The Automated Clearing House (ACH) system supports the digital movement of monetary funds among different bank accounts. In the United States, the ACH can conduct domestic and international transfers. Many companies use consumer ACH transfers as their preferred or only payment method for products or services rendered. However, ACH transfers will fail to process if companies do not provide all the necessary information.

First and foremost, the company must supply its legal name, a federal tax ID (also called an “employer identification number”), and years of business. Companies must also provide their bank account numbers and the estimated time to process their incoming ACH transfers to facilitate consumer ACH payments. After submitting this information to the ACH network, it typically takes several days to receive account approval.

In some industries and market sectors, companies may need official authorization from their customers to receive ACH payments. This authorization may be a disclosed recorded phone conversation, a signed contract, or an online payment.