ACH, commonly known as Automatic Clearing House, is a unique network that enables electronic bank-to-bank payment transfers in the United States. The ACH network is run by Nacha – the National Automated Clearing House Association – which is funded by the financial institutions it governs. ACH electronic payment is an efficient way to transfer money from bank to bank without using credit card networks, paper checks, wire transfers, or cash.
Although you may have never heard of the ACH network before, if you have ever received a payment from an employer via direct deposit, or paid back a colleague through e-transfer, you’ve experienced the advantages of the network in action. In this blog, we’ll cover everything you need to know about ACH electronic payments and how they work.