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What is ACH versus direct deposit?
Whereas an ACH payment can be either a credit (adding money) or debit (withdrawing money), direct deposit is always an ACH credit payment. This means that in a direct deposit, money is credited—or “pushed”—into an account via ACH. In other words, all direct deposits are ACH payments but not all ACH payments are direct deposits.
Credit and Debit
ACH (Automated Clearing House) is a payment processing network that’s used to send money electronically between banks in the United States. It allows for automated, electronic debiting and crediting of both checking and savings accounts.
No, ACH and Zelle are not technically the same thing, although Zelle utilizes the ACH network. Basically, all Zelle payments are (instant) ACH payments but not all ACH payments are Zelle payments.
Most US banks and other FIs (financial institutions) including credit unions allow ACH transfers. To send and receive ACH payments, an FI must be part of the ACH (Automated Clearing House) network, which is governed by Nacha.
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