ACH transfers can also be used to transfer money between financial institutions. If you have a checking account with a particular bank and a brokerage account with a particular investment company, for example, you can use ACH transfer to send money from your checking account to your investment account (or vice versa).
Here’s another example of how you might deposit money to your account electronically: Suppose you have a PayPal account connected to an eBay seller account, which you use to earn money by selling toys, clothes, and other items from your home that you no longer want. You might prefer to conduct all your banking activities from your primary checking account, so you first need to transfer the money you’ve earned from your PayPal account to your bank. You can do this online through the PayPal website or through the PayPal mobile app by providing your banking information.
You can also deposit money to your bank account after receiving money from friends, family, or people you work for through an online payment service like Venmo, PayPal, or Popmoney. Once the money is in that account, you can then transfer the money to your checking account. Sometimes there is a fee associated with these transactions.