{"id":9407,"date":"2023-12-24T10:17:17","date_gmt":"2023-12-24T15:17:17","guid":{"rendered":"https:\/\/faisalkhan.com\/?page_id=9407"},"modified":"2023-12-24T10:17:18","modified_gmt":"2023-12-24T15:17:18","slug":"ach-pull","status":"publish","type":"page","link":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/","title":{"rendered":"ACH Pull"},"content":{"rendered":"\n

Definition of ACH Pull<\/h3>\n\n\n\n

An ACH pull<\/strong> is a type of ACH transaction where funds are “pulled” from the payer’s bank account by the payee. In this case, the payee initiates the transaction and, with prior authorization from the payer, withdraws the designated funds from the payer’s account.<\/p>\n\n\n\n

How It Works<\/h3>\n\n\n\n
    \n
  1. Authorization:<\/strong> Initially, the payer grants permission to the payee to pull funds from their account. This often involves setting up a mandate or agreement.<\/li>\n\n\n\n
  2. Initiation:<\/strong> When a payment is due, the payee initiates the transaction, requesting the funds from the payer’s account.<\/li>\n\n\n\n
  3. Processing:<\/strong> The payee’s bank processes this request and sends it through the ACH network.<\/li>\n\n\n\n
  4. Transfer:<\/strong> The funds are transferred from the payer\u2019s bank account to the payee\u2019s account.<\/li>\n\n\n\n
  5. Completion:<\/strong> The payee receives the funds, and the payer\u2019s account balance is reduced by the transaction amount.<\/li>\n<\/ol>\n\n\n\n

    The “Pull” in ACH Pull<\/h3>\n\n\n\n
      \n
    • The term “pull” indicates that the transaction is initiated by the recipient of the funds. The recipient has the authorization to withdraw the agreed amount from the sender\u2019s account.<\/li>\n<\/ul>\n\n\n\n

      Users of ACH Pull<\/h3>\n\n\n\n
        \n
      • Businesses:<\/strong> Commonly used for recurring billing, such as subscription services or utility payments.<\/li>\n\n\n\n
      • Individuals:<\/strong> For automatic bill payments, like mortgage or credit card payments.<\/li>\n\n\n\n
      • Financial Institutions:<\/strong> For loan repayments or investment contributions.<\/li>\n<\/ul>\n\n\n\n

        Pros and Cons<\/h3>\n\n\n\n

        Pros:<\/strong><\/p>\n\n\n\n

          \n
        1. Convenience for Payee:<\/strong> Automates the collection process, ensuring timely payments.<\/li>\n\n\n\n
        2. Efficient for Recurring Payments:<\/strong> Ideal for regular, fixed payments like subscriptions.<\/li>\n\n\n\n
        3. Reduced Payment Delays:<\/strong> Minimizes the risk of late payments from customers.<\/li>\n<\/ol>\n\n\n\n

          Cons:<\/strong><\/p>\n\n\n\n

            \n
          1. Less Control for Payer:<\/strong> Once authorized, the payer has limited control over individual transactions.<\/li>\n\n\n\n
          2. Overdraft Risk:<\/strong> If the payer’s account lacks sufficient funds, it may lead to overdraft fees.<\/li>\n\n\n\n
          3. Potential for Errors or Fraud:<\/strong> Incorrect amounts or unauthorized pulls can occur, requiring vigilance.<\/li>\n<\/ol>\n\n\n\n

            Examples of ACH Pull Usage<\/h3>\n\n\n\n
              \n
            1. Utility Bills:<\/strong> A homeowner sets up an ACH pull arrangement with their utility company. Each month, the utility company automatically pulls the bill amount from the homeowner\u2019s bank account.<\/li>\n\n\n\n
            2. Subscription Services:<\/strong> A consumer subscribes to a streaming service. The service provider pulls the monthly subscription fee from the consumer\u2019s bank account on a set date.<\/li>\n<\/ol>\n\n\n\n

              In these examples, ACH pull transactions simplify the payment process for regular, ongoing financial commitments, benefiting both the payee and the payer in terms of convenience and reliability.<\/p>\n","protected":false},"excerpt":{"rendered":"

              Definition of ACH Pull An ACH pull is a type of ACH transaction where funds are “pulled” from the payer’s bank account by the payee. In this case, the payee initiates the transaction and, with prior authorization from the payer, withdraws the designated funds from the payer’s account. How It Works The “Pull” in ACH […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":3611,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_uag_custom_page_level_css":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"blocksy_meta":[],"featured_image_urls":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","gb-block-post-grid-landscape":"","gb-block-post-grid-square":"","yarpp-thumbnail":""},"post_excerpt_stackable":"

              Definition of ACH Pull An ACH pull is a type of ACH transaction where funds are “pulled” from the payer’s bank account by the payee. In this case, the payee initiates the transaction and, with prior authorization from the payer, withdraws the designated funds from the payer’s account. How It Works Authorization: Initially, the payer grants permission to the payee to pull funds from their account. This often involves setting up a mandate or agreement. Initiation: When a payment is due, the payee initiates the transaction, requesting the funds from the payer’s account. Processing: The payee’s bank processes this request…<\/p>\n","category_list":"","author_info":{"name":"Faisal Khan","url":"https:\/\/faisalkhan.com\/author\/nomismad\/"},"comments_num":"0 comments","featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","gb-block-post-grid-landscape":"","gb-block-post-grid-square":"","yarpp-thumbnail":""},"post_excerpt_stackable_v2":"

              Definition of ACH Pull An ACH pull is a type of ACH transaction where funds are “pulled” from the payer’s bank account by the payee. In this case, the payee initiates the transaction and, with prior authorization from the payer, withdraws the designated funds from the payer’s account. How It Works Authorization: Initially, the payer grants permission to the payee to pull funds from their account. This often involves setting up a mandate or agreement. Initiation: When a payment is due, the payee initiates the transaction, requesting the funds from the payer’s account. Processing: The payee’s bank processes this request…<\/p>\n","category_list_v2":"","author_info_v2":{"name":"Faisal Khan","url":"https:\/\/faisalkhan.com\/author\/nomismad\/"},"comments_num_v2":"0 comments","yoast_head":"\nACH Pull - Faisal Khan<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ACH Pull\" \/>\n<meta property=\"og:description\" content=\"Definition of ACH Pull An ACH pull is a type of ACH transaction where funds are “pulled” from the payer’s bank account by the payee. In this case, the payee initiates the transaction and, with prior authorization from the payer, withdraws the designated funds from the payer’s account. How It Works The “Pull” in ACH […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/\" \/>\n<meta property=\"og:site_name\" content=\"Faisal Khan\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/faisalkhanpaymentconsultant\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-24T15:17:18+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@FaisalKhanllc\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/\",\"url\":\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/\",\"name\":\"ACH Pull - Faisal Khan\",\"isPartOf\":{\"@id\":\"https:\/\/faisalkhan.com\/#website\"},\"datePublished\":\"2023-12-24T15:17:17+00:00\",\"dateModified\":\"2023-12-24T15:17:18+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/faisalkhan.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Learn\",\"item\":\"https:\/\/faisalkhan.com\/learn\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Payments Wiki\",\"item\":\"https:\/\/faisalkhan.com\/learn\/payments-wiki\/\"},{\"@type\":\"ListItem\",\"position\":4,\"name\":\"ACH Pull\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/faisalkhan.com\/#website\",\"url\":\"https:\/\/faisalkhan.com\/\",\"name\":\"Faisal Khan\",\"description\":\"Get expert guidance on licensing, banking, payments, and cryptocurrency. Faisal Khan is your go-to resource for all your financial services needs.\",\"publisher\":{\"@id\":\"https:\/\/faisalkhan.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/faisalkhan.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/faisalkhan.com\/#organization\",\"name\":\"Faisal Khan LLC\",\"url\":\"https:\/\/faisalkhan.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/faisalkhan.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/faisalkhan.com\/wp-content\/uploads\/2023\/05\/Faisal-Khan-LLC-Main-Logo-2023.png\",\"contentUrl\":\"https:\/\/faisalkhan.com\/wp-content\/uploads\/2023\/05\/Faisal-Khan-LLC-Main-Logo-2023.png\",\"width\":285,\"height\":80,\"caption\":\"Faisal Khan LLC\"},\"image\":{\"@id\":\"https:\/\/faisalkhan.com\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/faisalkhanpaymentconsultant\",\"https:\/\/x.com\/FaisalKhanllc\",\"https:\/\/www.linkedin.com\/company\/faisal-khan-llc\"]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"ACH Pull - Faisal Khan","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/","og_locale":"en_US","og_type":"article","og_title":"ACH Pull","og_description":"Definition of ACH Pull An ACH pull is a type of ACH transaction where funds are “pulled” from the payer’s bank account by the payee. In this case, the payee initiates the transaction and, with prior authorization from the payer, withdraws the designated funds from the payer’s account. How It Works The “Pull” in ACH […]","og_url":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/","og_site_name":"Faisal Khan","article_publisher":"https:\/\/www.facebook.com\/faisalkhanpaymentconsultant","article_modified_time":"2023-12-24T15:17:18+00:00","twitter_card":"summary_large_image","twitter_site":"@FaisalKhanllc","twitter_misc":{"Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/","url":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/","name":"ACH Pull - Faisal Khan","isPartOf":{"@id":"https:\/\/faisalkhan.com\/#website"},"datePublished":"2023-12-24T15:17:17+00:00","dateModified":"2023-12-24T15:17:18+00:00","breadcrumb":{"@id":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/ach-pull\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/faisalkhan.com\/"},{"@type":"ListItem","position":2,"name":"Learn","item":"https:\/\/faisalkhan.com\/learn\/"},{"@type":"ListItem","position":3,"name":"Payments Wiki","item":"https:\/\/faisalkhan.com\/learn\/payments-wiki\/"},{"@type":"ListItem","position":4,"name":"ACH Pull"}]},{"@type":"WebSite","@id":"https:\/\/faisalkhan.com\/#website","url":"https:\/\/faisalkhan.com\/","name":"Faisal Khan","description":"Get expert guidance on licensing, banking, payments, and cryptocurrency. Faisal Khan is your go-to resource for all your financial services needs.","publisher":{"@id":"https:\/\/faisalkhan.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/faisalkhan.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/faisalkhan.com\/#organization","name":"Faisal Khan LLC","url":"https:\/\/faisalkhan.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/faisalkhan.com\/#\/schema\/logo\/image\/","url":"https:\/\/faisalkhan.com\/wp-content\/uploads\/2023\/05\/Faisal-Khan-LLC-Main-Logo-2023.png","contentUrl":"https:\/\/faisalkhan.com\/wp-content\/uploads\/2023\/05\/Faisal-Khan-LLC-Main-Logo-2023.png","width":285,"height":80,"caption":"Faisal Khan LLC"},"image":{"@id":"https:\/\/faisalkhan.com\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/faisalkhanpaymentconsultant","https:\/\/x.com\/FaisalKhanllc","https:\/\/www.linkedin.com\/company\/faisal-khan-llc"]}]}},"featured_image_src":null,"featured_image_src_square":null,"uagb_featured_image_src":{"full":false,"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"gb-block-post-grid-landscape":false,"gb-block-post-grid-square":false,"yarpp-thumbnail":false},"uagb_author_info":{"display_name":"Faisal Khan","author_link":"https:\/\/faisalkhan.com\/author\/nomismad\/"},"uagb_comment_info":0,"uagb_excerpt":"Definition of ACH Pull An ACH pull is a type of ACH transaction where funds are “pulled” from the payer’s bank account by the payee. In this case, the payee initiates the transaction and, with prior authorization from the payer, withdraws the designated funds from the payer’s account. How It Works The “Pull” in ACH…","_links":{"self":[{"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/pages\/9407"}],"collection":[{"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/comments?post=9407"}],"version-history":[{"count":1,"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/pages\/9407\/revisions"}],"predecessor-version":[{"id":9408,"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/pages\/9407\/revisions\/9408"}],"up":[{"embeddable":true,"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/pages\/3611"}],"wp:attachment":[{"href":"https:\/\/faisalkhan.com\/wp-json\/wp\/v2\/media?parent=9407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}