ACH Payments Guide — Eastern Business Banking®

What Are ACH Payments?

ACH (Automated Clearing House) payments are electronic bank-to-bank transfers processed through the ACH network. Eastern Business Banking® provides full ACH capabilities for your business, including vendor payments, payroll, tax payments, and recurring billing. ACH payments are more cost-effective than wire transfers and ideal for transactions that don't require same-day settlement.

Setting Up ACH Payments in Eastern Business Banking

Step 1: Access the ACH Module

After completing your Eastern Business Bank login, navigate to the Payments section and select "ACH" from the menu. If ACH is not visible, contact the Business Service Team at 1-800-333-8000 to enable ACH capabilities for your account.

Step 2: Create an ACH Company

Before initiating payments, you need to set up an ACH Company profile:

1. Navigate to ACH → ACH Company Setup
2. Enter your business name as it will appear on recipients' bank statements
3. Set your company entry description (e.g., "PAYROLL", "VENDOR PMT")
4. Select the funding account (checking account that will be debited)
5. Choose standard or same-day ACH processing
6. Save the ACH Company profile

Step 3: Add ACH Recipients

For each payment recipient, you need to add their banking information:

• Recipient name and address
• Bank routing number (9 digits)
• Bank account number
• Account type (checking or savings)
• Payment amount (for fixed-amount recurring payments)

Always verify recipient banking information with a written authorization form (Authorization Agreement for Direct Deposit). Eastern Bank provides templates for ACH authorization forms.

Step 4: Create an ACH Batch

An ACH batch groups multiple payments together for processing:

1. Navigate to ACH → New Batch
2. Select the ACH Company profile
3. Choose payment type (PPD for pre-authorized, CCD for corporate, CTX for corporate with addenda)
4. Add recipients to the batch (or import a NACHA file)
5. Enter payment amounts for each recipient
6. Set the effective date (when funds should be transferred)
7. Review the batch summary
8. Submit for approval (if dual approval is enabled)

ACH Payment Types

ACH Processing Schedule

Understanding ACH processing times ensures your payments arrive when expected:

ACH payments are only processed on federal banking business days. Payments scheduled for weekends or holidays will be processed on the next business day.

Managing ACH Batches

Editing a Pending Batch

Batches that haven't been submitted for processing can be edited freely. You can add or remove recipients, change amounts, or modify the effective date.

Cancelling a Batch

To cancel an ACH batch before processing:

1. Navigate to ACH → Batch History
2. Find the batch you want to cancel
3. Click "Cancel" (only available before the cut-off time)
4. Confirm the cancellation

ACH Reversals

If an ACH payment was sent incorrectly, you can request a reversal within specific timeframes:

• Duplicate/erroneous payments: reversal window is 5 banking days
• Wrong dollar amount: reversal window is 5 banking days
• Wrong recipient: contact Business Service Team immediately

Use the ACH Reversal Request Form available on the Eastern Bank Business Resources page.

ACH Security & Fraud Prevention

• ACH Positive Pay — review and approve/return incoming ACH debits
• ACH Filter/Block — block all unauthorized ACH debits
• Dual approval — require two users to approve ACH batches
• User permissions — restrict who can create, edit, and approve ACH batches
• Daily limits — set maximum ACH dollar amounts per day

Learn more about account security in our Online Banking Security Guide.

Frequently Asked Questions