ACH and how does it work?
ACH stands for Automated Clearing House, the system whereby the Federal Reserve facilitates the automatic transfer of funds from one bank account to another. You may know it as Direct Debit or Sure-Pay. After receiving authorization from the homeowner, who provides the routing number and account number of his bank account, the association (or its management company) generates an electronic file containing a description of the homeowners’ account, the association’s account, and the dollar amount of the transfer. This file is transmitted to the bank, which forwards it to the Federal Reserve, and the transfers take place.
