What does ACH Payment mean?
When dealing with financial institutions, there can be terminology and words used that we do not encounter in everyday conversation. If you're paying rent and wondered what the term ACH Payment stood for, below is a brief description of the term and how it applies to your rental payment.
An ACH Payment is an electronic payment from one bank to another financial institution. The acronym stands for Automated Clearing House, and it's simply the transfer of monies from your bank account to that of the property manager, owner or whoever is collecting the rent.
These payments only occur on business days, so for weekends and holidays, the payment will not go through until the next business day. Be sure to keep this in mind if your rent is due on or around the holidays.