The ACH network enables which types of electronic transactions?

The ACH network enables which types of electronic transactions?

• A. In-person card payments
• B. International wire transfers
• C. Cash withdrawals
• D. Direct deposits, social security, government benefits statements, electronic bill payments, person-to-person, and business-to-business

Answer: (D)

The ACH network is an electronic funds-transfer system in the United States that processes batch payments between banks. It enables direct deposits (like payroll and government benefits), electronic bill payments, person-to-person transfers, and business-to-business payments. It’s designed for domestic, non-card, non-cash transfers that run through banks rather than at a point of sale. In contrast, in-person card payments are handled by card networks at the merchant’s checkout, international wire transfers use wire networks, and cash withdrawals involve physical cash rather than an ACH entry. So the description that includes direct deposits, government benefits, electronic bill payments, person-to-person, and business-to-business transfers is the one that fits ACH.

The ACH network is an electronic funds-transfer system in the United States that processes batch payments between banks. It enables direct deposits (like payroll and government benefits), electronic bill payments, person-to-person transfers, and business-to-business payments. It’s designed for domestic, non-card, non-cash transfers that run through banks rather than at a point of sale. In contrast, in-person card payments are handled by card networks at the merchant’s checkout, international wire transfers use wire networks, and cash withdrawals involve physical cash rather than an ACH entry. So the description that includes direct deposits, government benefits, electronic bill payments, person-to-person, and business-to-business transfers is the one that fits ACH.