During electronic banking procedures, whether there is a deposit or withdrawal, the transaction goes through the Automated Clearing House or the ACH. There are two kinds of ACH transactions, which would be direct deposits and direct payments. The two would be classified as debits and credits, and this is a secure way to send funds between accounts and banks.
If your paycheck is deposited through direct deposit or you pay your bills online, then you are using ACH transfers. If you receive your paycheck, then you will see a credit to your account; however, if you send funds to someone, then you will see the debit.
When a person is paying for goods or services, there are two types of transactions that they can choose from. They may choose ACH debit or ACH credit. A credit transaction may also be referred to as a push transaction. When this type of transaction is done, the bank directly sends the transaction to the merchant.
ACH debit is often referred to as a pull transaction. In this type of transaction, the money is not directly sent, for a request is first received. When at a store, if using credit, the cardholder is not required to enter their pin information, but when using debit, they are.