What Are The Types of ACH Payments?

ACH is the driving force behind most bank-to-bank money transfers, including payroll deposits, invoice payments, and more. What types of ACH transactions are available, and how do they work?

WRITTEN & RESEARCHED BY
Erica Seppala
Editor & Senior Staff Writer

Last updated onUpdated July 20, 2026

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Key Takeaways

ACH transactions fall into two main categories: credits that push money into an account and debits that pull authorized payments from an account.
Same Day ACH can speed up eligible transfers, though banks and processors may set earlier submission deadlines.
ACH payments, eChecks, and EFTs are related but not interchangeable; ACH and eChecks are both types of electronic fund transfers.

Automated Clearing House (ACH) payments are electronic bank-to-bank transfers used for direct deposit, bill payments, business payments, and account-to-account transfers.

Below, we’ll explain the main types of ACH transactions and how they move through the ACH network.

Table of Contents

ACH Transaction Structure
Types Of ACH Transactions
Same-Day ACH
ACH Payment Codes
ACH Payments VS eChecks VS EFTs
The Bottom Line On ACH Transaction Types

ACH Transaction Structure

ACH payments move between bank or credit union accounts through financial institutions and an ACH operator.

The sender’s financial institution submits the transaction in a batch to one of two ACH operators:

The Federal Reserve, which operates FedACH
The Clearing House, which operates the Electronic Payments Network

The ACH operator sorts the transactions and sends them to the receiving financial institutions, which credit or debit the appropriate accounts. The two operators exchange transactions so payments can reach accounts across the ACH network.

ACH files are processed through multiple windows each banking day. Settlement generally occurs on business days, not weekends or federal holidays.

Types Of ACH Transactions

ACH transactions fall into two main categories: credits and debits.

ACH Credits

An ACH credit “pushes” money from the sender’s account to the recipient’s account. The sender controls when the payment is initiated and how much is sent.

Common ACH credits include:

Payroll direct deposits
Government benefits and tax refunds
Business disbursements and reimbursements
Vendor and invoice payments
Account-to-account and person-to-person transfers

ACH credits may settle the same day, the next banking day, or within two banking days.

ACH Debits

An ACH debit “pulls” money from the payer’s account after the payer authorizes the recipient to initiate the transaction.

Common ACH debits include:

One-time and recurring bill payments
Subscription payments
Loan and mortgage payments
Donations
Online purchases paid directly from a bank account

ACH debits typically settle the same day or the next banking day.

Same-Day ACH

Same Day ACH allows eligible ACH credits and debits to settle on the same banking day.

The final ACH operator submission deadline is 4:45 p.m. ET, although banks and payment providers may require earlier submission. Same Day ACH payments are currently limited to $1 million per transaction.

ACH Payment Codes

ACH transactions use Standard Entry Class, or SEC, codes to identify details such as whether a payment involves a consumer or business account, whether it is a credit or debit, and how it was authorized.

Businesses using a payment processor generally won’t need to select these codes themselves. Some of the most common include:

SEC Code	Common Use
PPD	Consumer credits or debits authorized in writing, such as payroll deposits or recurring payments
WEB	Consumer payments authorized or initiated online or through a mobile device
TEL	Consumer debits authorized by telephone
CCD	Business-to-business credits or debits with limited payment details
CTX	Business-to-business credits or debits that include more detailed remittance information
IAT	ACH payments involving a financial institution outside the United States

Other codes apply to specialized transactions, including electronic check conversion and re-presented checks.

ACH Payments VS eChecks VS EFTs

ACH payments, eChecks, and electronic fund transfers are related but not interchangeable:

EFT: An electronic fund transfer is any payment that moves money electronically. It is a broad category that includes ACH payments, debit card transactions, ATM transfers, and some person-to-person payments.
eCheck: An eCheck is an electronic payment that uses a customer’s bank account and routing information instead of a paper check. These payments are typically processed through the ACH network.

In other words, ACH payments and eChecks are types of EFTs, but not every EFT is an ACH payment or eCheck.

The Bottom Line On ACH Transaction Types

Whether you’re using ACH to credit or debit an account, ACH transactions provide a secure and low-cost method of moving money between accounts.

Looking to add ACH transaction support to your payment processes? We can help you compare ACH processors. When choosing an ACH processing account, it’s essential to consider factors such as transaction fees, security features, and integration options with your existing payment systems.

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Erica Seppala

Editor & Senior Staff Writer at Merchant Maverick

Erica has been writing about small business finance and technology since 2008. She joined Merchant Maverick in 2018 and specializes in researching and reviewing business software, financial products, and other topics to help small businesses manage and grow their operations. Her expertise has been cited in MSN, Reader's Digest, Vox, U.S. News & World Report, and Real Simple. She is a Certified ProAdvisor for QuickBooks Online and QuickBooks Payroll, a graduate of Limestone University, and currently resides in Greenville, South Carolina.

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