The ACH processing has remained over the years shrouded under clouds of misconceptions primarily because it has a number of applications. ACH processing can be used for both debit and credit payments. It can be used by merchants as well as consumers for ACH credit transactions and also ACH debit instruction.

In order to dispel all the misconceptions, one must first of all acquaint himself with the concept. The concept behind ACH services was conceived about thirty years ago at The National Association of Automated Clearinghouse (NACHA) as an alternative to paper checks. The first type of ACH payment was direct deposit of payroll. It is still one of the most popular types of ACH payments because of its convenience and reliability.

Over time, the technology became immensely popular amidst all and sundry primarily because of its cost-effectiveness, reliability and efficiency. ACH is now being used by all federal, state and local authorities for collecting taxes and remitting refunds. Retailers and other consumer-related businesses are also making use of the technology to settle debts with consumers.

ACH services offers several benefits for small businesses. To begin with, direct deposit of payroll can be used to pay all the employees. There are a number of other businesses that cater to provide such ACH services for small businesses. These companies take care of all the direct deposit requirements of small businesses, right from the filling of taxes to the withholding of obligations that are associated with any payroll.

Most accounting software providers also offer Ach services for direct deposit of payroll. Such services are often an add-on to the normal accounting packages and are either free of cost or just a nominal amount is charged for the service in conjunction with the accounting package. Most premium versions of accounting software packages provide an add-on service of direct deposit of payroll at some additional cost.

Apart from these companies, financial institutions also offer direct deposit of payroll that links to the accounting software directly. These are often priced at much lesser rates than the former ones.

Banks also offer ACH services in the form of online bill payment tools for small businesses that enable them to pay off vendors or anybody else electronically. The service is very convenient and user friendly and integrates with the most common accounting software packages automatically.

With the advent in technology, several online bill payment providers are now coming up with options to pay bills with the mobile phone as well. A plethora of mobile apps is available on the internet that allows users to make use of ACH services via mobile phones.

The ACH provides not just a convenient and user-friendly means to settle payments online but also a reliable one. Paying off obliges, employees, vendors etc. have never been easier before. If you have a sound knowledge about the whole concept, you would definitely understand and appreciate it. It is easier, safer and will definitely help to increase the productivity of your business.