ACH Credit is a way for businesses to make payments to other businesses. It's essentially an electronic version of writing a check or sending money through PayPal.

ACH Credit transfers involve two parties: the sender and the receiver. The sender (usually a business) initiates an ACH credit request and provides the bank with necessary information about the recipient (another business). The sender’s bank then sends funds directly from their account to that of their counterpart’s account at another financial institution, using the information provided by both parties during setup.

It can also be used for payroll and vendor payment purposes, redirect IRS also counts as ACH credit.