ACH (Automated Clearing House) is the name of an electronic network for financial transactions in the United States. ACH processes large volumes of both credit and debit transactions which are originated in batches.
The ACH network is regulated by the National Automated Clearing House Association (NACHA) and is most commonly used for direct deposit of payroll by employers, for electronic payments in Internet commerce, and for data exchange between financial institutions.
ACH credit transfers include direct deposit payroll and vendor payments. ACH direct debit transfers include consumer payments on insurance premiums, mortgage loans, and other kinds of bills. Businesses are also increasingly using ACH to collect from customers online, rather than accepting credit or debit cards.
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