ACH (Automated Clearing House)

The Automated Clearing House (ACH) is a secure electronic network used to process financial transactions between banks. It handles batch payments like direct deposits, bill payments, and recurring transfers efficiently and cost-effectively. Instead of paper checks or wire transfers, ACH moves money electronically from one bank account to another, typically within one to two business days. It's widely used by individuals, businesses, and government agencies for routine payments due to its speed, reliability, and low cost. The ACH system helps facilitate smooth, automatic money movement without manual intervention.