It should be easy to pay and get paid, right? After all, a steady cash flow is critical to any business. Moving funds back and forth should be simple.

Unfortunately, it isn’t always easy—not until you have the right process in place.

And choosing the right payment service can be complicated, especially when the options come with so many different terms. ACH payments. EFTs. eChecks.

What do they all mean, how do they relate to each other, and how can you use them to simplify your business bill pay process?

When it comes to these 3, here’s the bottom line:

  • EFT stands for Electronic Funds Transfer. It’s an umbrella term for any kind of payment that’s made electronically.
  • ACH stands for automated clearing house. An ACH payment is a specific kind of electronic payment that uses a banking network (the ACH network) in the U.S.
  • An eCheck is a specific kind of ACH payment.

In other words, an eCheck is a kind of ACH payment, which is a kind of EFT. So you don’t really have to make a choice between them.

Better yet, Bill.com lets you make several different kinds of EFT funds transfers, including both ACH payments and eChecks. When you use Bill.com, you have access to all of them.

The article will walk you through each of these terms, explaining each one and laying out their uses and benefits for your business.

 

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