NACHA at
http://www.nacha.org/ is the agency that oversees and make regulatory changes to the ACH network. The vast majority of banks in the US participate in the ACH network and are bound by the ensuing regulations. The ACH network is only valid in the US and Puerto Rico. Worldwide ACH processing is a goal of many but the reality is that the technical burdens are overwhelming.
ACH processing allows the typical business to collect a recurring payment without waiting for the customer to mail a physical check. By having the customer authorize the electronic debit to their account the transfer of funds is accomplished electronically.
A couple of important considerations are:
1) The monies are not transferred immediately. The transaction proceeds as if the customer has a valid account with the needed funds available. It may take 2-3 days (4 is the most except in rare cases) to receive information that confirms the transaction was valid. Funding typically takes place in 4 days.
2) The money is not guaranteed to be paid. A transaction may be returned and the monies no transferred. We can re-collect automatically for NSF transaction (non sufficient funds)
3) Fees are transaction based and typically cost about .32 to start. Volume breaks are available.
