ACH Fund Transfers
This page describes ACH transfers on the Highnote Platform.
ACH, or "Automated Clearing House," is a batch-processing network that handles electronic funds transfers between U.S. bank accounts. Unlike wire transfers, ACH transactions are processed in batches at scheduled intervals throughout the day, making them cost-effective for high-volume, routine transfers.
Highnote organizes ACH transfers by origin in relation to the Highnote Platform, namely originating from Highnote and non-originating. Both types can move funds in either direction (into or out of Highnote accounts) depending on the specific use case.
- Originating ACH Transfers: ACH transfers that Highnote initiates on behalf of users.
- Non-Originating ACH Transfers: ACH transfers initiated by external parties that affect Highnote accounts.
| Transfer Type | Initiator | Source Account | Destination Account | Direction |
|---|---|---|---|---|
| Originated ACH | Cardholder/Admin | Highnote Account | External Bank Account | Outbound/Inbound |
| Non-Originated ACH | External Bank | External Bank Account | Highnote Account | Inbound/Outbound |
Highnote also executes internal "ACH transfers. Internal transfers support ACH workflows by updating the Highnote ledger; they are not on the ACH network. Actual ACH settlement only occurs between Highnote and external banks.
Highnote supports multiple ACH use cases to meet the needs of both individuals and businesses. These use cases are grouped by who initiates the transfer—either Highnote (originated) or an external party (non-originated). Each category covers common financial activities such as funding accounts, making repayments, cashing out, payroll deposits, and more.
Below are the primary ACH transfer use cases supported by the platform:
ACH transfers initiated by Highnote that affect external parties:
| ACH Trasfer Type | Direction | Use Case |
|---|---|---|
| Fund Loading | External bank account → Highnote account | Adding money to prepaid cards, account funding |
| Repayment | External bank account → Highnote account | Credit card payments, loan repayments |
| Fund Withdrawal | Highnote account → External bank account | Cashing out, account closure settlements |
| Check Payment (ACH) | Highnote account → External (via Checkbook) | Sending checks via Checkbook.io, processed as ACH |
ACH transfers initiated by external parties that affect Highnote accounts:
| ACH Trasfer Type | Initiator | Direction | Use case |
|---|---|---|---|
| Direct Deposits | Employer or government agency | Employer/Bank → Highnote account | Payroll, government benefits, pension payments |
| External Debits | Third-party merchants or service providers | Bill payments, subscription services | Third-party merchants/providers |
| Incoming Check Payment (ACH) | External party | External bank account → Highnote account | External party sends a check, cleared as ACH |