ACH Credits
ACH Credits is a utilization of Bank of Albuquerque's Automated Clearing House (ACH) Service. Credit entries can be initiated for accounts at financial institutions anywhere in the nation. Your company will realize cost savings and personnel efficiency as paperwork (e.g. Stop payments, re issues, reconcilements) resulting from a paper check environment will be reduced significantly. You will have greater control over your cash position because the settlement date for ACH credits is predetermined. You can precisely forecast cash outflows.
The ACH credit service is used largely for:
- direct payroll deposits
- vendor payments
- tax payments
- dividend payments
- interest payment
- annuity payments
How Does It Work?
Your company provides payment data to Bank of Albuquerque. This can be done via a mainframe data transmission, a PC data transmission using Auto Cash Transfer Software, magnetic tape or diskette. Bank of Albuquerque posts transactions to Bank of Albuquerque's accounts before transmitting all other transactions to the Federal Reserve Bank. The Federal Reserve Bank disperses the transactions to the respective financial institutions. Finally, the receiving financial institutions post the credit transactions to their customers' checking or savings accounts on the settlement date.
ACH Debits
ACH Debits work operationally the same as credits (above) in a service that automatically collects funds from your customers. Bank of Albuquerque's pre-authorized debit service reduces costs to your company by reducing invoice preparation and mailing, incoming mail handling and deposit preparation. You have greater control of cash because the payment date is predetermined and the funds may be utilized on the specified settlement date. Your customers will appreciate the convenience of not having to remember to mail bill payments, not to mention postage and time spent preparing the bill payments.
The ACH Debit Service is typically used to collect:
- insurance premiums
- loan payments
- subscriptions
- a variety of other applications
- utility payments
- association dues
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