These days, the financial world can be an absolute labyrinth of strange words and acronyms: equity firm, stocks, bonds, drops, sales, etc. All these buzzwords can surround us like flies and make us feel both dazed and confused.
The latest one to make a list: ACH Transaction. Now, you probably already know what transaction means: it usually involves exchanging things, particularly money, between two parties. But what about ACH? What does it stand for? And why should you care?
We’re going to answer all of these questions and more, so if you’re interested, keep reading to find out more about the latest economic trend.
What Is An ACH Transaction?
So just what is an ACH transaction? Well, the truth is that you’ve probably done one before; you just referred to it by a different name.
When you’re running a business, you must know precisely where your money comes from and where it goes so that you can keep tabs on it closely. This is why millions of companies in the US use the ACH (Automated Cleaning House Network) to handle their bank-to-bank transactions.
Since these transactions can’t be stolen, lost, or disappear in the chaotic inferno that is the postal service, they’re vital to businesses everywhere, especially to maintain a healthy cash flow and handle large-scale payments.
Most companies use these for:
- Paying off utility bills (which can be astronomical in certain parts of the country)
- Paying off vendors
- Paying off employees
- Receiving payments from customers
So, as you can see, ACH transactions are pretty crucial to the well-being of any business. But if this transaction is so secure, why would you ever need to track it?
Why Would You Need To Track An ACH Transaction?
Not everything is perfect, folks. Like anything else in the world, ACH transactions can fail, and when they do, it can be a massive headache both for you and your employees.
Now, responsible business owners track their ACH transactions regardless of whether there is a problem or not because they know that they have to keep track of where their money is coming from and where it’s going.
Here are some circumstances that would merit tracking an ACH transaction:
- An employee not getting paid correctly or on time
- An employee not being reimbursed for their business expenses
- A payment to a vendor that was sent but not received
- A customer can prove that they have paid you, but the payment not being visible on your business bank account (this one can be the king of all headaches)
So, let’s say that you find yourself in one of these scenarios. What are you supposed to do? Who do you call? What’s your next step?
Well, lucky for you, we bring you the only guide you’ll need to track an ACH transaction so that you can get that annoying customer to stop bothering you, and you can finally get paid.
The Complete Guide To Tracking An ACH Transaction
Alright, here we are, the answer to the most important question right now: how do you track an ACH transaction? After all, if it’s not meant to be stolen, lost, or disappeared in the mail, then where could it possibly be?
Well, your first step may be to wait. Unlike other financial transactions, ACH transactions can take a while to complete, usually up to three business days. So, if you’re only learning about the problem right now, then your best shot is to wait for the mandated three days so that you can get to the bottom of it.
But what if the three days go by, and there’s still no news of where your money is or where it went? Fortunately, there’s a safety net, and it’s called an ID Number.
How to Find Trace ID Numbers?
Believe it or not, ACH transactions are similar to humans because they both have ID numbers that can be figured out and tracked. Your ACH transaction has its very own ID number, just like you do on your ID card.
Now, here’s where things can get a little tricky. If you were the one to make the payment, you have to go to the platform where you made the transaction and look for the part that says ‘Transaction details.’ This tab will give you all the information you’ll need to track down your transaction, which can be quite a lot, so remember that you don’t have to read through all of it; you have to find where it says ‘Trace ID.’
Simply because everything in finance has to be complicated, there are two types of Trace IDs: the destination and the source. Source ID numbers can be traced the same day the transaction was made, while Destination ID numbers can only be traced once the money is made into the recipient’s bank account.
So, if you’re lucky enough to have a Destination ID, then send it to the angry customer (or whatever recipíent you may have) and tell them to call their bank immediately. The executives can take it from there.
The Bottom Line
Responsible business owners know exactly where all their money is at all times, but sometimes, things can slip. Things can happen. That is why business owners need to know precisely what an ACH transaction is, what it entails, how to track it down, and most importantly, how to deal with it if it gets lost. In this world, knowledge is power, and having the right kind of knowledge on many things, especially those of a financial nature, can put you ahead.