Detail About A Few Different Payment Systems

Detail About A Few Different Payment Systems

Details About a​ Few Different Payment Systems
There are numerous different types of​ payment systems, such as​ credit cards, checks, wire transfers, bank drafts, point of​ sale machines, as​ well as​ many others. the​ World Wide Web offers the​ following definition for​ what a​ payment system is​ the​ generally accepted method of​ payment for​ trade in​ an economy.
Consumers worldwide use payment systems everyday when conducting daily activities such as​ shopping and​ paying bills. if​ you use an ATM card, or​ a​ credit card to​ pay for​ goods and​ services, or​ to​ pay your bills, it​ is​ important to​ understand what an ACH is​ all about.
ACH, which stands for​ automated clearing house, is​ actually an electronic banking network that operates only in​ the​ United States. This network processes huge amounts of​ electronic payments, such as​ debit and​ credit card transactions. the​ automated clearing house also processes payments to​ individuals such as​ the​ direct deposit of​ their paychecks, direct deposit of​ tax refunds, as​ well as​ other government benefit checks.
Consumers use this particular payment system to​ execute payments for​ their mortgages, car insurance, health insurance, utility bills, and​ many other bills that are paid on a​ regular basis. Consumers also utilize POS machines when shopping for​ groceries and​ other goods at​ retail stores. a​ POS machine, also known as​ a​ point of​ sale terminal, allows the​ consumer to​ make an automated payment using their debit or​ credit card. This payment is​ then processed through the​ ACH. This method of​ electronic payment processing makes it​ convenient for​ consumers; especially those who do not like to​ carry a​ large sum of​ cash with them.
The ACH payment system uses what has been termed the​ Standard Entry Class Code. This system of​ coding assigns a​ certain threedigit code to​ each payment, so the​ ACH system will be able to​ recognize what type of​ payment it​ is. There are currently codes in​ use for​ the​ following types of​ payments; accounts receivable entries, corporate cash disbursements, death notification entries, point of​ purchase, prearranged payments and​ deposits, represented check entries, telephone initiated entries, web initiated entries, and​ destroyed check entries.
With so many payments being processed by the​ ACH payment system, it​ would be impossible for​ one entity to​ handle all of​ them. for​ this reason, payments are processed by certain companies depending upon what region of​ the​ United States the​ payment originated in. While some companies processing payments for​ the​ ACH payment system do so for​ numerous stares, there are some that handle payments for​ only a​ single state.
As you go through your daily activities, make a​ note of​ every time you happen to​ use your credit or​ debit card, or​ even write a​ check. You may not realize it, but every time you use one of​ these methods to​ pay for​ something, some sort of​ payment system is​ processing your payment.

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