Zil Money is a great platform to handle your financial transactions. You can use it to transfer money between clients or payees on a one-time or recurring basis. You can also use it to pay bills and payroll. Zil Money is easy to use –all you need is the account details of the person to whom you’re sending money, and because fees are smaller, it’s a more affordable option for your transactions. Zil Money allows you to pay and get paid by wire, check drafts, and check by mail service. You can do this at low transaction fees.
Automated Clearing House (ACH) Definition
ACH is the U.S financial network that people use to make electronic payments. ACH payments are a way to pay for things electronically, like when you get your paycheck deposited directly into your bank account or pay your bills automatically each month. Businesses also use ACH to pay for online and telephone orders and when they charge customers’ credit cards directly.
The National Automated Clearing House Association, or NACHA, is responsible for the ACH network. This network allows financial institutions to quickly and securely transfer money between accounts.
How do your ACH Transactions take place in Zil Money?
ACH payments involve two people. One person pays, and the other person gets paid. The first person is called the initiator, and the second person is called the receiver.
- With Zil, the initiator can make a transaction from anywhere, anytime.
- The initiator will be asked to provide checking account details, such as the recipient’s routing and bank account numbers.
- The receiver’s bank information and transaction amount can be found in the ACH files, along with many other parameters and formats.
- The receiver’s bank debits the amount from the initiator account.
- The receiver’s account gets credited.
Advantages of ACH Transactions
- Easier recurring billing
- Preferred funding compared to checks
- Fewer disputes
- More secure
- Environmentally friendly
- Slow process
- Limitation on the transfer amount
- Cutoff times
- Lack of International payments
What Is Needed for ACH Transactions?
ACH transactions allow users to pay money electronically through the Automated Clearing House network, regulated by NACHA. You can now send and receive ACH transactions easily using Zil Money.ACH transactions require routing, account number, account type, and bank name.
Difference Between ACH Transactions and Wire Transactions
The main difference between ACH and wire transactions is that wire transactions can only push money. ACH can do both push and pull money. Wire transaction is used to transfer larger sums of money quickly. It usually gets credited quicker than ACH. Wire transactions have a higher transaction fee percentage than ACH transactions. Depending on your business deal and cash flow needs, you can pay and get paid in different ways, including ACH, direct deposit, printable check, or wire transactions through Zil Money.
How Long Do ACH Transactions Take?
ACH payments usually take a few days to go through. This is because the ACH network sends payments in batches, unlike wire transfers which are sent instantly. Financial organizations can choose to have ACH credits delivered and processed within one business day or in one to two days. However, ACH debit transactions must be processed the following business day. With the Same-day ACH transfer, you can send ACH payments in a single day.
ACH payments can take up to three days to process. With Zil Money, you can process your payments quickly and easily. You also have the option of same-day ACH, which lets you process the payment on the same day.
The Penalty Fee for Rejected ACH Transaction
You might be charged a penalty fee if your business receives a rejected ACH payment. You should try fixing the problem as soon as possible, to avoid being charged extra monthly fees. You might want to only approve ACH payments from trusted customers to avoid this hassle.
Some ACH transactions are denied; why?
- R01- Insufficient funds: This implies the customer did not have sufficient money in their report to cover the quantity of the debit entry.
- R02 -Bank account closed: This occurs when a customer has an account with your company, but they closed it.
- R03-No bank account or unable to locate the account: This code is used if the data you entered (either your name or account number) does not match the bank’s records.
- R29- Rejected: If a bank rejects your request to take money from someone’s account, you will get this rejection code.
If you’re looking for a more affordable and convenient way to handle your financial transactions, Zil Money is the solution for you. With our easy-to-use platform, you can transfer money between clients or payees on a one-time or recurring basis. You can also use Zil Money to pay bills and payroll – making it the perfect all-in-one solution for your business’ finances. Ready to get started? Sign up today!