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.
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.
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.
ACH Payment Support
We support both ACheck21 and ACH Banking payment methods.
ACH Banking
ACH Banking transactions require customer authorization before processing:
- A valid authorization signature must be obtained from the account holder.
- This authorization is required only once per customer.
- After the initial authorization is completed, subsequent transactions do not require reauthorization unless the payment details change.
- Once authorization is received, the transaction is submitted for processing.
- The transaction may return a status of Approved or Declined, based on ACH network validation.
- Approved transactions must be settled by the merchant within 72 hours.
Important: Transactions without proper authorization may be rejected or held by the gateway.
ACheck21
ACheck21 transactions differ from standard ACH Banking:
- No prior authorization signature is required.
- Transactions are processed based on check details provided at the time of sale.
ACH Resend Authorization API
Valor provides an ACH Resend Authorization API for merchant use:
- Merchants can resend an authorization request to the customer.
- If the customer completes the authorization: The transaction proceeds to processing
- If the customer does not authorize: The transaction remains in a Held status at the gateway.