When to use an ACH transfer – An ACH transfer allows you to send or receive funds electronically, rather than by check or cash. ACH transactions may take 3-5 days for the transfer to be completed, but there is no charge for the transaction. They are generally used for making payments or recurring transactions to an account, but they can be one-time transactions. For example, Credit Union accounts can be used for direct deposit from the IRS for refunds (one-time) and direct deposit from Social Security (continuing). (See also – When to use a wire transfer.)
ACH Receiving – Member Instructions
The funds received can represent a variety of products such as payroll, interest, pension funds, dividends, tax refunds, 401k Plan distributions, mutual fund distributions, life insurance distributions and others.
Note: Instead of ACH payments, the initiating institution may identify this type of transaction as EFT (electronic funds transfer), Bill Payer, Direct Deposit, etc.
The Credit Union can also set up recurring payments, withdrawals and deposits to and from your credit union accounts. Please contact your branch if you need assistance in completing your ACH Authorization Agreement for Automatic Payments.
Note: Regulatory limitations apply to the number of withdrawals you are permitted to have from your share accounts (6 per sub account per month). Ask us how we can set up an account to allow more than 6 electronic debits/withdrawals from your account. The number of share account deposits is not regulated.
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