Automated Clearing House (ACH)

The Automated Clearing House (ACH) is a secure electronic network used for processing financial transactions in the U.S. It allows money to be transferred directly between bank accounts without the need for paper checks. Common uses include direct deposits for salaries, automatic bill payments, and one-time transfers. ACH transactions are generally processed in batches and can take one to two business days to complete. This system streamlines payments and reduces the costs associated with traditional methods, making financial transactions quicker and more efficient for both individuals and businesses.