5 ACH Processing Differs from Credit Card Processing
An ACH transaction differs from a credit card transaction in that the request is actually processed with the nightly batches, and there is no guarantee of funds being available. With a credit card authorization that is not the case; funds are guaranteed when the payment is authorized. Think of an ACH request and electronically cashing a customer’s check. However, because you avoid the credit card payment infrastructure, your costs for an ACH payment are a tiny fraction of what the same credit card transaction would be.