ACH (Automated Clearing House)
ACH is a basic electronic payment system that helps move money between banks in the United States. Think of it like a digital highway that transfers funds for things like direct deposit paychecks, bill payments, and business-to-business payments. It's much like writing a check, but everything happens electronically instead of with paper. When you see terms like "electronic funds transfer" or "direct deposit" in banking, they're usually talking about ACH. This system is run by an organization called NACHA (National Automated Clearing House Association) and is used by nearly every bank and financial institution in the US.
Examples in Resumes
Managed ACH payment processing system handling over 10,000 transactions monthly
Implemented new ACH and Automated Clearing House compliance procedures
Reduced ACH payment processing errors by 45% through improved verification systems
Typical job title: "ACH Specialists"
Also try searching for:
Where to Find ACH Specialists
Professional Associations
Online Communities
Job Boards
Example Interview Questions
Senior Level Questions
Q: How would you handle a situation where there's a large volume of rejected ACH transactions?
Expected Answer: A senior specialist should discuss investigating root causes, implementing preventive measures, coordinating with banks and clients, and developing procedures to reduce future rejections while maintaining compliance.
Q: What strategies would you implement to improve ACH operations efficiency?
Expected Answer: They should mention automation opportunities, risk management procedures, team training programs, and ways to streamline processing while maintaining accuracy and compliance.
Mid Level Questions
Q: What are the main differences between ACH credits and debits?
Expected Answer: Should explain that credits push money out (like direct deposit), while debits pull money in (like automatic bill payments), and describe different processing timeframes and risk considerations.
Q: How do you ensure ACH processing stays compliant with NACHA rules?
Expected Answer: Should discuss keeping up with rule updates, following standard operating procedures, maintaining proper documentation, and regular staff training.
Junior Level Questions
Q: What are common ACH return codes and what do they mean?
Expected Answer: Should be familiar with basic return codes like insufficient funds (R01), account closed (R02), and no account found (R03), and basic handling procedures.
Q: Explain the basic ACH processing timeline.
Expected Answer: Should understand standard processing windows (next-day, same-day), cut-off times, and settlement periods for different types of ACH transactions.
Experience Level Indicators
Junior (0-2 years)
- Basic ACH processing and monitoring
- Understanding of common return codes
- Payment verification procedures
- Basic banking regulations knowledge
Mid (2-5 years)
- ACH problem resolution
- Risk assessment and management
- Regulatory compliance monitoring
- Process improvement implementation
Senior (5+ years)
- ACH operations management
- Team leadership and training
- Banking relationship management
- Strategic process optimization
Red Flags to Watch For
- No knowledge of basic banking regulations
- Unfamiliarity with NACHA rules
- Poor attention to detail in financial transactions
- Lack of experience with banking software systems
Related Terms
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