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5 votes
true or fale:The ACH network electronically transfers funds by crediting the collector's bank account and debiting the payer's bank account for the amount of a payment.

1 Answer

5 votes

Final answer:

The statement regarding ACH transfers is true; debit card transactions directly debit the payer's account and credit the collector's account, while credit card transactions involve a short-term loan from the credit card company.

Step-by-step explanation:

The statement 'The ACH network electronically transfers funds by crediting the collector's bank account and debiting the payer's bank account for the amount of a payment.' is true. When you use a debit card, the money is transferred immediately from your bank account to the seller, similar to writing a check. A debit card transaction instructs your bank to transfer funds directly to the seller's account. On the other hand, a credit card transaction involves a short-term loan. The credit card company pays the seller immediately and then charges the card holder at the end of the billing cycle.

answered
User Akuhn
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