Bank Transfer | B2B Finance Glossary
Sep 14, 2023 by Zazil Martinez
What Is A Bank Transfer? A bank transfer is a payment method that allows individuals and businesses to transfer money from one bank account to another. Bank transfers can be sent from one of your internal accounts to another, from your payments processing account to your bank account, and from your bank account to an external account. Automated Clearing House (ACH) transfers are one of the most common forms of domestic bank transfers, and they're initiated online and facilitated by the Automated Clearing House, run by NACHA. The ACH network enables payments among over 10,000 financial institutions in the US and makes it possible to make direct deposit payments and direct payments. Direct deposits are usually used for salary payments, tax refunds, annuities, and interest payments. These payments are most commonly initiated by government entities and businesses instead of individuals. Direct payments are made between bank accounts using the credit and debit system. The funds are withdrawn from the payer's account and deposited directly into the payee's account.
Read More