ACH transactions fall into two main categories, namely direct deposits and direct payments. These work in both business-to-consumer as well as business-to-business scenarios. Direct deposit Businesses and the government commonly use direct deposits to make payments to a consumer. For example, a small business will use a direct deposit for payroll. Direct deposits may also be used for government benefits such as social security, as well as tax refunds, interest payments, etc. Direct payment Both individuals and organizations use direct payments to move funds electronically. Whether a working son wants to send money to his elderly mother or a busy parent wants to pay utility bills efficiently — ACH direct payments are useful. It’s also possible to sign up for recurring payments, which is especially effective for regular fixed expenses.