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The automatic clearing
house( ACH ) is a secure network used to connect banks
to each other. It is through this network that direct
deposits, electronic payments, certain transfers,
and debit-card payments are processed. The ACH network
is also used for business-to-business payments, electronic
payments, and certain local, state, and federal taxtransactions.
ACH processing was initially introduced in the 1970s
as an alternative to traditional check payments.
The Federal Reserve Board, Visa, the American Clearing
House Association, and other ACH operators act as
central clearing facilities for the ACH network. The
Federal Reserve is the sole public sector entity serving
as a central clearing facility in the United States.
It is charged with handling the majority of the nation’s
ACH transactions. Commonly referred to as FED ACH
, the Federal Reserve Board clearing facility is primarily
used to handle repetitive retail transactions that
feature low dollar amounts.
How
is ACH different from other payment methods?
ACH
transactions are transmitted electronically between
financial institutions through data transmission.
ACH provides faster processing than paper checks by
eliminating physical handling.
How
does ACH work?
By entering
the required banking information, you authorize the
institution (Valley Water Systems) to debit your checking
or savings account.
Can
I use either a personal or business account for an
ACH transaction?
Yes.
What
information do I need to provide for an ACH transaction?
You provide
the name on the account, indication of checking or
savings, bank routing number, and account number.
Where
can I find my bank routing number?
Your bank routing
number and bank account number can be found on the
bottom of your check. Bank routing numbers are always
9 digits long. Account numbers may be up to 17 digits
long - there is no specific number of characters for
a bank account number. These numbers may appear in
different order on your check. Some financial institutions
list the routing number first, while other financial
institutions list the account number first. We do
not need your check number.
Here is an example of where you can find this information
on your checks:
Do
I need to notify my bank that I am paying by ACH?
You may need
to check with your financial institution to make sure
that the account is "ACH enabled" or that "debit blocking"
is removed so that the institution will be permitted
to debit your checking account.
Is
there any risk of an unauthorized access to my private
financial banking information?
The electronic
payment application is hosted by Farmington Savings
bank. The FSB system is continually monitored for
intrusion. Information regarding the transaction is
stored in a secure environment behind multiple firewalls
and through a dedicated FSBcircuit. The consumer's
bank account number is encrypted when stored using
256-bit encryption. EDS also utilizes a secure transmission
protocol with encryption.
What
happens if there are insufficient funds in my checking
account?
If there are
insufficient funds in your account, this item will
be processed the same way as a bounced check.
VWS will initiate collections proceedings to recover
these funds from you. Your financial institution will
notify you and may charge a returned check fee.
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