Automated Clearing House (ACH) is an electronic network for financial transactions in the United States. It is a system that processes large volumes of both credit and debit transactions in batches. ACH transactions include direct deposit of payroll, pre-authorized debits from a bank account, electronic checks, and tax payments. The transactions are processed through the Federal Reserve Bank or a private-sector ACH operator.
ACH transactions are often used as a cost-effective alternative to paper checks or wire transfers. They are also faster than traditional checks and provide a more secure way of transferring funds, as there is no need to physically handle paper checks or send sensitive information over the internet.
The use of ACH has become increasingly popular over the years, as it offers a convenient and efficient way for individuals and businesses to make and receive payments.