Electronically transfer money from one bank to another with the ACH (Automated Clearing House) payment system. Utilizing ACH payment services facilitated by Home Federal can help make your business banking easier through direct deposits, direct payments, and more.


The Two Types of ACH

ACH seamlessly transfers funds electronically from one bank account to another bank account, regardless of if the accounts are located at the same bank or not. This means money can move between your business's bank account and the accounts of your employees, customers, and/or other businesses. As an added convenience, ACH works for transferring both incoming (receivables) and outgoing (payables) transactions. With ACH, you can electronically transfer payroll to your employees via direct deposit, or even receive payments electronically from other businesses who may owe you money for a product or service. The two types of ACH operate between:

Business & Employee and/or Customer 

Uses for this type of ACH include: 

Direct Deposit (Manage Payables)

  • Payroll
  • Commissions
  • Expense Reimbursement

Direct Payment (Manage Receivables)

  • Rent or Storage
  • Monthly Dues
  • Contributions or Donations
  • Regular Misc. Payments
    (utility, alarm services, membership payments, etc.)

Business to Business

Uses for this type of ACH include: 


  • Electronically pay for supplies
  • Electronically pay vendors
    for overhead payments such as cleaning services, delivery services, maintenance, memberships, subscriptions, health care plan payments, etc.


  • Pull payments electronically
    from a business customer that has purchased a product or service
  • Collect monthly payments
    (i.e. rent, memberships, dues, support fees, etc.) from another business.

The Main Benefits of Using ACH:


Manage Payables with Direct Deposit

By setting up direct deposit using ACH, you can virtually eliminate the need for paper checks, which ultimately lowers administrative costs (no need to prepare checks manually!) and drastically lowers the potential for altered, forged, or stolen checks. Not only is direct deposited payroll and other payables more secure for your business, it's also more convenient for your employees and vendors! 

Many employees see direct deposit as a benefit of employment, and many businesses do as well for managing receivables, as they don't have to deal with the hassle of depositing  paper checks and waiting for access to their funds. Additionally, when direct deposit is administered for a payment, you'll see the debit on your account right away, rather than having to wait for paper checks to be deposited/cleared by the recipient and their bank – resulting in a more consistent cash flow for your business.   

Manage Receivables with Direct Payment

As a business yourself, wouldn't you like to remove the hassle of processing and depositing paper checks manually? You can by setting up direct payment using ACH! With direct payment, your customers can make their invoice payments to you in a more secure and confidential way – while most likely appreciating your company's commitment to convenience and technology in today's business world.   

Once direct payment is set up for your customers to utilize, your business's cash flow will show more consistency through this more reliable, accurate, and timely method of payment for your customers. Setting up electronic payments through ACH for your customers typically results in quicker payments on your receivables due to ACH's accessibility and convenience versus manual forms of payment – another way to create a more consistent cash flow!


If you're interested in setting up ACH for your business, contact any one of our local business bankers.   

ACH is just one of many business banking services offered to make your business banking easier. 
Beyond our services, our business banking products include checking accounts, savings accounts, loans, and more.