Automated Clearing House

Automated Clearing House (ACH) is an electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit, payroll and vendor payments.

Basics of ACH

ACH payments are simply electronic transfers from one bank account to another. Common uses include:

• A customer pays a service provider
• An employer deposits money to an employee’s account
• A consumer moves funds from one bank to another
• A business pays a supplier for products