I pay independent contractors as vendors. I know what ACH transfers are. What is the difference between ach and debit when given that option for payment method?

Hello there, @marketing7. I wanted to share some information about the differences between the two payment methods.

ACH transfers are typically processed in groups and may take a few business days to complete. They're ideal for larger transactions and regularly scheduled payments.
 

In contrast, debit payments occur when funds are taken directly from a bank account to complete a payment. These transactions are processed in real-time or near real-time, so you receive immediate confirmation.

It's important to note that your contractors' ability to process debit payments is dependent on their bank's supported payment methods and features. While most banks offer debit cards for both online and in-person transactions, the specific capabilities may differ based on the bank and the type of account. To ensure everything runs smoothly, it's recommended that your contractors verify their bank's policies regarding debit payments.

Moreover, you can also check out this article to learn how to prepare and file your Federal 1099s with QuickBooks Online (QBO): Create and file 1099s with QuickBooks Online.
 

I'm always ready to assist you anytime if you have additional questions about payment methods or any QuickBooks-related. I will leave the thread open for you to reply.