What Is Automated Clearing House (ACH)
Automated Clearing House (ACH) is a secure network for connecting financial institutions and banks. Through the ACH Network, businesses, individuals, government organizations and financial
institutions deposit, electronically pay, transfer, debit and conduct other financial transactions. The ACH Network is used primarily by businesses to process payments from e-commerce sites,
municipal utility districts, healthcare institutions, non-profits, government entities, educational institutions, and property management companies.
The Electronic Payments Association (NACHA) established rules and regulations governing the ACH Network and works to develop electronic
solutions to process payments throughout the ACH Network. According to the NACHA, over $18.2 Billion were processed by the network in 2008.
ACH Payments Include:
- Payroll direct deposits
- Direct payments of consumer bills, mortgages, loans, utility bills, and insurance premiums
- B2B Payments
- e-Checks
- e-Commerce payments
