Quick Definition

Automated Clearing House (ACH) is a network used for electronic funds transfers and payments in the United States.

Examples

• 1Direct deposit of payroll by an employer into an employee's bank account.
• 2Automatic mortgage payments deducted monthly from a homeowner's bank account.
• 3Businesses paying suppliers through direct ACH payments for invoice settlements.
• 4Consumers paying utility bills online through their bank's bill payment service.

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