ACH (Automated Clearing House)
ACH is an electronic network for processing financial transactions in the United States. It handles direct deposits, bill payments, and business-to-business transfers through batch processing.
What Is ACH?
The Automated Clearing House (ACH) is a U.S. payment network that moves money electronically between bank accounts. It processes transactions in batches rather than individually, making it cheaper than wire transfers for routine payments.
Common ACH Uses
ACH vs Wire Transfer
| Feature | ACH | Wire |
|---|---|---|
| Speed | 1-3 business days | Same day |
| Cost | $0-3 per transaction | $15-45 per transaction |
| Reversibility | Can be reversed | Generally irreversible |
| Best for | Recurring, routine payments | Large, urgent transfers |
ACH Processing Times
Nacha (the organization governing ACH) processed over 31 billion transactions in 2023, totaling more than $80 trillion.
Related Terms
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