EFT vs. ACH: What’s the Difference?

As you’ve been learning about different transaction types and pros & cons of each for your business, you’ve probably come across EFT and ACH. Some people use these interchangeably, some confuse them, and some use them without exactly knowing what they mean. As a business owner, it’s advantageous for you to be informed. Different payment types dictate the flow and cost of money exchanges. Even a small percent change in fees or timing difference across types can make a world of difference. Taking the time to develop the most optimal payment system for your business will serve you for years to come and lay a proper foundation for growth and scaling. With that in mind, let’s learn about EFT (electronic funds transfer) & ACH (automated clearing house). EFT vs. ACH What is EFT? EFT stands for electronic funds transfer. An electronic funds transfer (EFT) is ANY transfer by two corresponding…

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What is the Difference Between ACH & Wire Transfer?

When researching your options for a payment system, you may have come across the choice of supporting ACH transactions but weren’t quite sure if they applied to your shop. While ACH transactions make the most sense for merchants running eCommerce businesses, any merchant who conducts online transactions in any capacity could benefit from implementing ACH. ACH stands for Automated Clearing House, and you can think of it like a check without the paper. If you’re enrolled in a direct deposit program or pay your bills with monthly auto-drafts, you’re already used to using ACH. It’s a little wordy, but technically speaking: ACH is a computer-based clearing and settlement facility established to process the exchange of electronic transactions between participating depository institutions.* Every year, ACH transactions move upwards of $41 trillion dollars across 24 billion transactions.* With that in mind, it’s no surprise that ACH now represents a significant portion of…

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