Automated Clearing House (ACH)

ACH: Say goodbye to checks and hello to effortless payments

Signature Bank’s Automated Clearing House (ACH) offers a fast, easy and cost-effective alternative to wire transfers and checks for making payments. ACH allows you to make electronic bank-to-bank transfers through the ACH network – a secure system used in the United States to move money between financial institutions. The ACH network is regulated by NACHA (National Automated Clearing House Association) and the Federal Reserve.

ACH payments are commonly used for:

  • Payroll direct deposit
  • Vendor payments
  • Bill payments
  • Recurring transactions
  • Person-toperson (P2P) transfers

Benefits of ACH transactions

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Convenience

Send and receive funds without handling checks or cash.
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Automation

Ideal for recurring payments like subscriptions or utility bills.
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Security

Eliminate risks associated with lost or stolen checks.
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Cost-effective

Cheaper than credit card processing fees or wire transfers
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Scalability

Efficient for both small and high-volume transactions
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Speed

Funds typically clear in 1-2 business days, and same-day ACH is now available

Combat fraud with ACH Positive Pay

ACH greatly reduces exposure to check fraud and phishing attacks compared to traditional payment methods. We offer ACH Positive Pay to further protect you from unauthorized transactions.
Learn more

Resources

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Federal holiday schedule for ACH services

FedACH Services operations during the 2025 holidays.
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NACHA Operating Rules

Guide to the rules governing the ACH Network.
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Preparing for 2026 ACH Rules & Guidelines update

Several significant amendments to the ACH Rules are on the horizon for 2026, which may require additional time to prepare and will impact the way companies process ACH payments. It is essential for corporate ACH Originators and Third-Party Senders to understand these changes to ensure compliance and efficiency in their payment processing operations. These upcoming changes include:
Corporate Originators and Third-Party Senders must prepare by updating policies, procedures, and systems to ensure compliance and effectively mitigate fraud risks. For more information on these changes, please download the 2025 ACH Rules Update for Corporate Originators and Third-Party Senders document. https://www.nacha.org/newrules

  • In March 2026 a new amendment will require companies initiating (1) Prearranged Payment and Deposit (PPD) credits related to wages/salaries to input a description of “PAYROLL” in the Company Entry Description and (2) e-commerce/online retail purchases (WEB debits) to use “PURCHASE”.
  • Also in March 2026, ACH Origination Fraud Monitoring will begin with the intent to reduce successful fraud attempts. Fraud monitoring will be required regardless of the Standard Entry Class (SEC) code or payment type initiated. Companies must establish and implement risk-based processes and procedures to identify payments suspected of being unauthorized or authorized under “false pretenses.”

Several significant amendments to the ACH Rules are on the horizon for 2026, which may require additional time to prepare and will impact the way companies process ACH payments. It is essential for corporate ACH Originators and Third-Party Senders to understand these changes to ensure compliance and efficiency in their payment processing operations. These upcoming changes include:
Corporate Originators and Third-Party Senders must prepare by updating policies, procedures, and systems to ensure compliance and effectively mitigate fraud risks. For more information on these changes, please download the 2025 ACH Rules Update for Corporate Originators and Third-Party Senders document.

Contact us 

Let our Signature Bank team assist in reaching your business goals and
aspirations. Contact us for more information.