Payment Types

Bank accounts do more than just house your money securely.

One of the ways financial institutions work to put customers first is offering multiple ways to send and spend funds. Consumers started using checks to pay merchants as early as 3000 B.C. Wire money transfers appeared in the late nineteenth century to authorize fund transfers across the United States. The modern credit card didn’t come around until 1950s, primarily used to pay when dining out. More recently, peer-to-peer apps were invented as the use of cash has declined in the last few decades.

Nowadays, banks offer a wide variety of ways to make payments from your checking (and even savings) accounts. From everyday purchases to large transactions, we make it easy to pay merchants, service providers, and even friends and family – without you needing to stop and withdraw cash.

Debit Card Payments

Debit cards can be used online or in-store, and the money comes straight from your checking account. For this, there’s a temporary period where the transaction is pending before it permanently posts. However, your account balance is usually updated as soon as you swipe your card if you use your bank’s mobile app. Debit cards are fast, straight-forward, and widely accepted.

ACH Bank Transfers

Many consumers may be unfamiliar with the term “ACH” – short for “Automated Clearing House.” If you’ve ever given your account number and routing number to a merchant providing a regular service (think water/electric bill), this is likely an ACH transaction. Or, if you use direct deposit to receive paychecks from your employer, those funds are deposited via ACH.

Checks

Many see checks as old-school. But, they still come in handy. Checks allow you to pay individuals or businesses. While most everyday customers don’t use checks, they can be used to pay for things like rent – or they’re are often used to access funds drawn from loan accounts. Nowadays, most consumers are more likely to receive checks than they are to write them. Organizations like the IRS use checks to distribute tax refunds, and insurance providers use them for reimbursements.

Online Bill Pay

Bill Pay is a service embedded into our online banking platform. Once set up, this can be used for one-time or recurring payments. Typically, it’s used to schedule monthly bills that don’t automatically come out, like internet, cable, or energy bills.

Wire Transfers

Quick and secure, no pending period, often irreversible. Wire transfers are usually used from business-to-business but can also be used for big ticket items like home purchases. If you need to send a large sum quickly and are very confident in where you’re sending it (i.e., not for Facebook Marketplace purchases or individuals you met online), wire transfers are for you.

P2P Payments

Outside of cash, this may be used the most often for casual payments between friends and family. The peer-to-peer payment app, Zelle, is embedded directly within our banking app, making it easy to send and receive funds in seconds. Pay friends back for coffee, split bills with roommates, or send gifts to family members instantly.

Whether it’s a quick card swipe, or a secure wire transfer – First National Bank handles it all. If you’re unsure the best payment method to use for your purchase, give us a call. Your bank is more than just a place to house your money. Have a question about how something works? We’re here to help.  

 

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