There are two types of transactions: debits and credits. ACH debits let you pull money from another account and ACH credits let you send money to another account.
For a transaction at your store, this is how ACH payments work:
At the time of checkout, your customer will link their bank account to TreezPay.
Once their bank account is linked, TreezPay will check that the customer has sufficient funds in their bank account and allow them to complete the transaction. At this time, no funds are actually debited from their account.
Once you have delivered the products to your customer, Treezpay will create an ACH request to debit the required funds and send this request to the TreezPay Bank that handles ACH requests (called the Originating Bank).
The Originating Bank then forwards this request to an ACH operator, the third party managing requests and settlement of ACH credits and debits between banks. There are two ACH operators in the US - the Federal Reserve and the EPN.
All these ACH requests are batched and processed in bulk.
The ACH operator then communicates this request to the customer’s bank and debits the customer’s bank account. Once that debit is cleared by the customer’s bank account, the payment is settled, and the money arrives in your Treezpay bank account.
A standard ACH transaction usually takes 3 to 5 business days to process. However, it's important to note that transactions may take longer to clear during weekends and public holidays, as ACH processing does not operate on these days.