The ACHCR full form is Automated Clearing House Credit, which refers to an electronic payment method that helps transfer money from one bank account to another.
The ACH network helps process these transactions, developed to simplify and speed up electronic banking transactions in India.
Working of ACHCR
Suppose you have secured a home loan. You can utilise the ACH network to repay your loan. This system will facilitate the entire process by deducting the EMI amount from your account and crediting it to the lender each month on a predetermined date.
All e-banking transactions using this network route through one of two houses: the Federal Reserve Bank or a private clearing house. Each house ensures efficient transactions and a simplified process between two entities.
Use Cases of the ACH Network
From government agencies and large or small private organisations to individuals, any entity can consider ACHCR payment.
In India, this advanced money transfer system is regulated by NACH (National Automated Clearing House). You can get help from this network for:
- Direct transactions, including payments to the government, payments of utility bills, etc.
- Transferring money between your two accounts held in different banks or financial institutions
- Making a digital payment to your credit card
- Making refunds from a company
The benefits of ACHCR, or ACH credit, include convenience, security, and an eco-friendly approach. Moreover, it helps avoid penalties such as late payment fees since the process is automatic.
