Your bank then submits your ACH transaction to a clearinghouse, a financial institution that processes these transactions. You’d enter the utility company’s banking information and how much you want to pay. First, you submit a request to your bank to electronically transfer money to your utility company. The transaction is processed through the ACH network instead a card network like Visa® or MasterCard.įor example, say you want to use ACH to pay your electric bill. You can use the ACH system to make a direct payment, which is when you send money to another person or company, or to receive a direct deposit, where you get money from someone, like your employer.
