Paying your utility bills, credit card bills, and loan obligations on time is extremely crucial. Missing them can prove costly and can even bring your credit score down. But then, how do you ensure that you pay them on time without fail? Sure, you could keep reminders to remind you. But then, there’s a far better way – through an ACH mandate.
You’re probably wondering what an ACH is, right? Also known as Automated Clearing House, it is a means of transferring funds automatically as when your obligations fall due. Through the use of ACH, service providers can automatically debit your account on the due date without you having to manually effect the payment transaction.
However, the key thing here is that you would need to first instruct your bank to use ACH to effect payments regularly as and when the obligations fall due. To do this, you would have to fill and submit an ACH mandate form with your bank.
Charges on ACH Mandate
Now, some banks offer ACH for free to its customers, while others charge a small fee for providing this service. Here’s a more in depth look at the ACH charges meaning and the various fees that you’re likely to incur.
1. ACH Credit Fee
This fee is usually charged for every deposit made through ACH.
2. ACH Debit Fee
This fee is typically charged for every payment made through ACH.
3. ACH Account Fee
The account fee is charged to compensate the bank for providing a host of services to you.
4. ACH Discount Fee
This fee is charged as a percentage of the transaction value and is applicable only for certain specific transactions. The higher the risk, the higher the discount fee.
How to download ACH Mandate Form
Now that you know all about ACH and the various charges that you’re likely to encounter, let’s take a look at how you can get your hands on the ACH mandate form.
1. Visit the official website of your bank.
2. Search for the ‘ACH mandate form’ on the website.
3. Download the form, fill all the necessary details, and submit the same to the nearest bank branch.
Here’s something that you should know. While almost all banks offer ACH facility, there may be some that don’t. So, ensure that your bank provides this facility before going ahead with the process.
Also, of late, many banks have started to offer ACH E-Mandate services as well. With this, you don’t have to download an ACH mandate form at all. It is a paperless process, which means that you can simply do it online within just a few minutes.
Want to know more about ACH? Head on over to Finserv MARKETS. You can not only get more information on the ACH process, but can also get to know the various advantages and the process that you have to follow to fill the ACH mandate form. So go on, make a visit to Finserv MARKETS right now.