ACH (Automatic Clearing House) payments let you electronically collect payment from customers by directly debiting their checking or saving account. ACH is more efficient and secure than paper check. It's a common payment method for large transactions, and unlike wire transfer, the customer's bank doesn't charge a fee for processing.
When a customer decides to pay by ACH, they enter their bank account and routing number on Kinnek. This takes only a few minutes.
The next step is to verify their bank account credentials. Verification can happen in two ways. If the customer is affiliated with one of 13 major banks (*see full list below), they can be verified instantly. If not, two microdeposits are transferred to the customer’s account. The transfer can take up to 2 business days. The customer then confirms the microdeposit amounts directly on Kinnek.
As soon as the customer’s bank account is verified, payment begins processing. Because Kinnek sticks to the standard ACH clearing process instead of an expedited version, it is able to eliminate risk and charge zero processing fee for ACH so that these transactions are extremely affordable for you.
The customer’s bank sends payment information to the Clearing House, which receives ACH payments in batches. Because the ACH network operates Sunday-Thursday, a payment sent on Thursday night will be received by the Clearing House on Sunday. After the batches are sorted, the customer’s transaction information is sent to the receiving bank. Your bank debits your customer’s bank account for the specified amount. This whole process can take up to 5 business days, but it can be less time than that.
Kinnek sends email updates on the status of your ACH payment, so you can keep track of exactly where the customer’s ACH payment is in the clearing process.
*These are the 13 banks where accounts can be verified instantly: Bank of America, Capital One, Charles Schwab, Chase, Citi Bank, Fidelity Investments, Navy Federal Credit Union, PNC, Suntrust, TD Bank, USAA, US Bank, and Wells Fargo.