Automated Clearing House

An automated clearing house (ACH) payment is an electronic debit that transfers money between participating financial institutions in the National Automated Clearing House Association. ACH payments can occur automatically each month, and initiation of ACH payments needs to happen only once, when you first authorize the method. Payments happen only on business days, and the money from your account is usually deducted the morning the debit is due and credited to your payment account that night.

Check

A check is a paper document that represents an agreement to transfer funds from your bank account to a designated payee on or after a particular date. Checks are decreasing in popularity as a payment medium. A study by the Banking Administration Institute and Hitachi Consulting found that 59 percent of people used a check for a payment in 2010, compared with 95 percent in 2005.

Online

Most banks offer online, personalized bill payment services through their website. Payments can be made electronically or with a paper check written by the bank if the creditor does not accept electronic payments. Users can decide when the payments leave their account as well as whether payments happen on a one-time or recurring basis. Processing times can vary from same-day processing up to one week. A Fiserv Corp. 2010 study found that online bill pay usage increased 11 percent from 2009 to 2010.

Phone

Most banks offer phone payment services. Payments can be made with a live person or an integrated voice recording system, which can speed up the process. Fees can apply for phone payments, and processing times vary with each financial institution, often depending on the time of day the payment is made.

In Person

Payments can be made in person at bank branches. Payments made in cash are usually credited the same business day, and payments made with checks from another financial institution take several business days to process. Banks typically accept in-person payments for all of their products, but they may not accept payments made payable to their affiliate financial institutions.