What is ACH in Valor?
Valor ACH transaction is an electronic payment method to transfer funds between bank accounts. ACH transactions are commonly used for a variety of purposes, including direct deposits, bill payments, and electronic funds transfers. Here's a detailed description of the process:
Initiation: An ACH transaction begins when an individual or organization authorizes a transfer. This could be through payroll for direct deposit, a consumer paying a bill online, or a business initiating a payment to a vendor.
Batch Processing: ACH transactions are processed in batches rather than individually. Banks and payment processors gather these transactions and submit them at specific intervals throughout the day.
Clearing and Settlement: The transactions are sent to the ACH network, where they are sorted and forwarded to the receiving bank. This process is managed by the National Automated Clearing House Association (NACHA) in the U.S.
Receiving Bank: The receiving bank processes the incoming ACH transaction, credits the account if it is a deposit, or debits it if it is a payment.
Completion: Funds are typically available within 1-2 business days, though some ACH transactions can settle the same day.
ACH transactions are known for being a cost-effective and efficient means of transferring money, particularly for recurring payments and large volumes of transactions. They are also secure, utilizing encryption and various authentication methods to protect against fraud and unauthorized access.
Sale API
Instead of using a credit card or cash, a buyer authorizes a debit from their bank account. The transaction is then processed in batches by the ACH network, eventually moving funds from the buyer's bank to the seller's bank. This process can take one to several business days.
Void API
ACH Void API allows merchants to cancel an ACH transaction that has been submitted but not yet settled. The void request must be initiated before the transaction is processed or settled by the bank.
ACH Transaction Fetch API
Retrieves the details and current status of an ACH transaction using a reference or transaction ID.
ACH Recurring API
Creates and manages recurring ACH payments based on a defined schedule (frequency, amount, and duration).