The Automated Clearing House (ACH) network is a secure, nationwide system that financial institutions use to transfer funds between bank accounts in the United States electronically. Managed by Nacha (National Automated Clearing House Association), the ACH network enables both credit and debit transactions, including:
- Direct deposits of payroll, Social Security, and tax refunds
- Automatic bill payments for utilities, mortgages, and loans
- Business-to-business payments
- Peer-to-peer money transfers
- Government and tax payments
ACH transactions are typically processed in batches, rather than instantly, like wire transfers, and often settle within one to two business days; however, same-day ACH is available in some cases.
It’s a cost-effective and efficient way for businesses and consumers to transfer money electronically, eliminating the need for checks or credit card networks.
