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ACH Payment vs Wire Transfer: What’s the Difference and Which Payment Method Should You Use?

Stax

ODFI submits ACH file – The originator’s bank or payment processor, also known as the originating depository financial institution (ODFI) submits the ACH entry containing the payment details. Government payments – You can use ACH to pay individual and business taxes to the IRS.

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ACH SEC Codes

Payment Savvy

The most common ones are: an employer sending money to their employees’ checking accounts, a customer sending money to a business for a service or goods, a business sending payment to the supplier for products or materials, a taxpayer sending money to Internal Revenue Service (IRS) or local organization.