The Automated Clearing House (ACH) is an electronic network used in the United States for processing a wide range of financial transactions, including direct deposits, bill payments, and electronic fund transfers. Operated by the National Automated Clearing House Association (NACHA) and the Federal Reserve, the ACH network provides a secure, efficient, and cost-effective way for banks and financial institutions to transfer funds between accounts. Transactions processed through ACH are typically batched and settled in bulk, which allows for lower costs compared to real-time payment systems. ACH is widely used for payroll, social security payments, mortgage and utility payments, and business-to-business transactions. Its role in facilitating direct and automated transfers makes ACH a cornerstone of the U.S. financial system, supporting millions of transactions daily.
