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For example, if a school system has contracts with specific food vendors to supply products to the schools within that system, ACH transfers are used to deliver money from the school system accounts to the accounts of the vendors.

Many government agencies use ACH transfers on a wide scale.

Therefore, the transaction might not appear immediately in your record.

Many businesses use direct deposit to pay their employees.

These companies might also notify the credit bureaus that you didn’t pay the bill on time which could cause your credit rating to plummet.

Businesses can also use ACH transactions in a similar manner to fulfill other financial obligations.

In short, the biggest advantage in using ACH transactions is that doing so simplifies the process of getting and giving money.

Last modified 01-Feb-2020 13:12