ACH

Automated Clearing House

ACH is an electronic network for financial transactions in the United States. It processes large volumes of credit and debit transactions in batches, including direct deposits, payroll payments, and bill payments.

ACH transactions typically take 1-3 business days to settle and are significantly cheaper than wire transfers. When you see ACH entries on your bank statement, they represent electronic transfers processed through this network. Common examples include paycheck deposits, utility bill payments, and online purchase debits.

Related Terms

EFT

Electronic Funds Transfer

EFT is a broad term for any transfer of money from one bank account to another through electronic me...

Direct Deposit

Direct deposit is an electronic payment method where funds are deposited directly into a checking ac...

NACHA

National Automated Clearing House Association

NACHA is the organization that governs the ACH network in the United States, setting the rules and s...

Wire Transfer

A wire transfer is an electronic transfer of funds between banks or financial institutions. Wire tra...

Batch Processing

Batch processing is a method of processing transactions in groups rather than individually (as in RT...

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