ACH debit payments are any payments taken directly from your savings and/or checking account. These could include credit card, mortgage or utility bill payments made directly to the merchant. For example, when establishing your electric bill payment through the company’s website, you are asked to enter your account number and financial institution’s routing number. Through the ACH network, the funds are withdrawn directly from your account, sent to the electric company’s financial institution and applied to your bill. ACH debits do not include charges made with your debit or credit card, or through online banking bill pay.
With same-day ACH debits, you can be sure a merchant receives your payment on time, which helps you avoid late payments and late fees.