If you have ever come across the ACH payment option in any of your bills or withdraw money, you should know that, it is a requirement to provide your routing and account number. It is important and considered for many reasons. It is important because the Automated Clearing House (ACH) network uses this information to successfully complete any financial transaction between your bank account and another bank account.
There are a number of reasons that you might want to withdraw your money using your routing and account numbers. Although the process might seem a bit complicated, it is quite easy as you will learn in this guide.
So, without much ado, let’s dig right into it!
Why Would You Want to Withdraw Money With Your Account and Routing Number?
Withdrawing money from your account using other simpler alternative methods is most common among savers. However, there are exceptional savers that prefer withdraw money with account and routing number. Below are the reasons that trigger the act:
1. Helps You Avoid the Transaction Fees That Usually go with the Use of Credit and Debit Cards
You will realize that every time you use your credit or debit card, there is an extra cost charged.
Thus, using ACH is a better option because there are no transaction fees. Most companies prefer this mode of payment because it eliminates the extra charge.
2. Using Your Routing and Account Number Will drop the Need for Checks
Checks are becoming a thing of the past with so many other available payment options. However, checks are still relevant for you might have some bills that you cannot pay using cards.
To use ACH withdrawals, request account number from the companies that you send checks. This helps to use your account and routing number to make payments. When you do so, you will no longer have to write a paper check to these companies. It also makes the transaction easier through online transactions.
3. Helps in Automation of Payments of Monthly Bills
If you have recurring payments like rent, a car loan, mortgage payments, it is possible to automate these bill payments through ACH withdrawals.
All you have to do is provide your routing and account number to the entity that you are paying the recurring bills. That means they will deduct money from your account to their account every month. This is not only more efficient but it easier than having to write checks every month.
Understanding Accounting and Routing Numbers
The banking system compromises of many banks. This makes it challenging for the system to identify your bank when you receive payments. That is why the American Banking Association came up with unique numbers to identify each bank in the system. This number is known as the routing number. An account number on the other hand is a number that identifies your unique account among the many accounts that the bank operates. This means you can’t find two bank accounts with the same number even if they from the same person. Each account has a unique number.
Note that it is possible to get similar bank account numbers from different banks. Nevertheless, their routing numbers are different because they differ from each bank.
How to Withdraw Money with Your Account and Routing Number and Initiate ACH Transfers
Although it might seem like a complicated process, it is pretty easy to initiate ACH withdraw money using your routing and account number. Banking systems in the United States made it possible to initiate either a debit or credit ACH transaction using your routing and account number. However, for this to work out successfully, you must have some sort of authorizations. Otherwise, the bank will block the transaction.
Here is the step by step process of how to initiate ACH transfers;
1. Find Your Routing And Account Numbers
In order to initiate any transfers or withdrawals using the ACH network, you must have your account and routing numbers. But where exactly can you get this information? Well, the first place to check should be your paper check.
Your routing number, account numbers are written on the check at the lower-left corner. The first set of numbers which is the routing number, your account number which is usually a set of 10 to 12 numbers will be at the middle while the last set of numbers is your check number.
However, different banks might place these numbers differently on the check. The rule of thumb though is that the larger numbers are usually your account number while the smaller ones are the check number.
You can also log into your bank’s website, open an online account, and search for “routing number.”Furthermore, you can always contact your bank for assistance.
2. Change Your Method of Bill Payment to ACH Payments And Remember To Give Your Banking Information
This requires you to provide your routing and account numbers for successful ACH payment.
The process of submitting this information involves typing the routing number once and the account number twice. It is thus important to ensure that you type this information correctly to avoid any glitches in the process.
3. Make the ACH Payment a Few Days Before the Due Date of the Bill
ACH payments are not instant and they usually take 2 to 5 days for them to go through. Although most of the companies that accept ACH transfer consider payments initiated on the due date to be on time, you can initiate the payment a few days earlier just to be on the safe side.
If you are expecting any payment via ACH, you should factor in the processing time which should give you an idea of when to expect the cash. However, there are some methods you can use to receive funds transferred though ACH instantly- more on this later.
4. Set an Onetime Payment or a Recurring Payment
Many companies that offer ACH payment option also let you set up a recurring payment schedule. This means that the payment will be automated.
However, for your recurring payment to start working properly, you might be forced to make one or two one-time payments.
5. Use Zelle or Other Services to Make Instant ACH Payments
ACH withdrawals usually take 2 to 5 days. However, it is possible to make instant withdrawals through services like Zelle. Most banks have embraced technology and are offering the service to their customers.
By using Zelle, funds are instantly sent by your bank to the recipient and then the normal ACH process takes place later. All you need to do is provide your email address or mobile number.
You can use other apps that allow for instant ACH transfers like Cash App, Venmo, and PayPal but you will be charged a small fee for using these services.
Handling Fraud on Your Account
If you suspect there is a fraud of any type on your bank account, then you should contact your bank immediately. When you report, you are going to protect your money from fraud or incurring further liability.
In case of fraudulent activity on your account, the bank will issue you with a new account number. It can also put into place security measures to ensure that your cash remains safe. Note that you should also not withdraw money from another person’s account without their consent as these amounts to a criminal act.
Other Ways to Move Funds
It is possible to move funds from your account apart from using ACH transfers or withdrawals.
One of the ways of doing so is;
- Using a debit card. The best thing with this option is that you do not disclose your account number while making payments. It is common to find than most physical stores do not accept account numbers as a mode of payment and a debit card comes in handy in such cases.
- Using a credit card is also another option you can use to move funds. When you use a credit card, money does not come directly from your account. However, you can still use the ACH network to pay off the interest on your credit card or pay off the amount on the due date.
- Another way that you can withdraw money from your account is through the ATM. Cashing accounts usually come with an ATM card which you can take advantage of and withdraw cash from ATMs which your bank’s network supports. Some banks charge for ATM withdrawals while some offer these services for free.
FAQ – Frequently Ask Questions
Can someone take money out of your account with an account number?
Yes, it is possible for someone else to withdraw money from your account with an account number. In case a person files a civil lawsuit against you and wins the case, then the judge might give them the right to withdraw money from your account. The procedure is called garnishment but the other party will need a judge to sign a court order to give them the right to do so.
What details does someone need to take money from my account?
To withdraw money from your account, he or she needs your account and routing number. They will also need authorization from you. You can authorize a company to take money from your account either by signing a form or through the telephone.
What can I pay with my routing and account number?
Well, there are a lot of things that you can pay using your routing and account number. You can pay your utilities including rent, electric bill, water bill, and other recurring bills. You can also pay for any kind of product and service that you buy from any company which accepts ACH transfers.
How do I withdraw money from another person’s account?
One of the simplest ways of withdrawing money from another person’s account is through the ATM. However, you must have that person’s ATM card and their PIN number.
Please note that it is illegal to withdraw money from another person’s account without their consent. If you are caught doing so, then you will be charged in a court of law.
Can you withdraw money from an ATM without an ATM card?
Yes, it is possible to withdraw cash from the ATM without an ATM card. However, in order for you to conduct the transaction, you must download your bank’s mobile phone application which allows you to withdraw from an ATM without a card.
Can I use my phone to withdraw from an ATM?
Yes, it is possible to use your phone to withdraw cash from the ATM. Most banks nowadays have mobile applications that make it easier for their customers to conduct their financial transactions. One way that the banks do so is by allowing customers to download the app and withdraws cash from an ATM via the app on their mobile phones.
Withdraw money using your account and routing number might seem like a complicated process but nothing can be further from the truth. It is quite a simple process and setting it up takes just a few minutes. However, before you can set up this process you must have your routing and account number. Finding these numbers is also easy as they are printed on checks that your bank issues. You can also use the ACH network to pay off your bills and the best part is that you can automate the system such that your recurring bills are paid automatically.
There are other ways of transferring cash from your account to another account. You can either use a debit or credit card for this very same purpose. However, using your routing and account number to withdraw money from your account is the easiest and best method.