ACH Debit Origination Benefits:
- There are two main reasons to use ACH Debit Origination: Cash Collection and Cash Concentration.
- Cash Collection: ACH Debit Origination allows for the fastest retrieval of money from customers.
- Cash Concentration: ACH Debit Origination allows businesses like retailers with multiple locations (which often maintain accounts at more than one bank) to consolidate funds in one depository account.
- Transferring funds in this manner is often more cost effective than originating drawdown wire transfers or issuing and processing checks.
- Funds transferred electronically are generally available for use the next business day.
ACH Credit Origination Benefits:
- Cost and efficiency are the two main benefits of originating payments via the ACH network.
- When sending numerous or repetitive payments, ACH Credit Origination is cost effective and typically the method of choice.
- Businesses often use this for "direct deposit" of funds to employees, retirees or other recurring payment recipients.
- Allows the flexibility of funding accounts maintained at other banks.