Which payment is typically NOT classified as an ACH payment?

ACH, or Automated Clearing House, payments are electronic payments that are processed in batches and are commonly used for various types of transactions. They include direct deposits, bill payments, and other transfers that occur between bank accounts in the U.S.

Credit card transactions do not fall under the ACH classification because they operate on a distinct network governed by credit card associations. When consumers make purchases or payments using credit cards, those transactions are processed through a credit card processor, involving the card networks and typically coming with different processing times and fees compared to ACH transactions. This separation is why credit card transactions stand out as not being classified as ACH payments.

On the other hand, utility payments, mortgage and rent payments, and salary payments are commonly executed as ACH payments since they involve direct debit from one bank account to another, often set up for recurring transactions, which aligns with the purpose of the ACH network.