What is a common use of ACH payments?

The use of ACH (Automated Clearing House) payments is predominantly associated with frequent and regular transactions such as salary and utility payments. This system facilitates the electronic movement of money between bank accounts, allowing businesses to automate payroll processing to ensure employees receive their wages on a consistent and reliable schedule. Additionally, ACH payments are often used for recurring utility payments, enabling consumers to pay their monthly bills automatically.

This method offers benefits such as reduced processing times and lower costs compared to traditional paper checks, making it an efficient choice for both businesses and consumers. By utilizing ACH for these types of transactions, organizations can streamline their operations and ensure timely payment without the need for physical checks or manual processing.

Options like emergency cash withdrawals and foreign exchange trading involve different payment methods that cater to immediate or international transaction needs, while one-time high-value transfers typically use methods designed for quick, secure transfers, like wire transfers. Therefore, salary and utility payments are the most common use case for ACH.