ACH Payment

An electronic funds transfer from one bank account to another through the Automated Clearing House network, a secure system that connects U.S. financial institutions.

What is ACH Payment?

ACH (Automated Clearing House) is a network that coordinates electronic payments and automated money transfers between banks across the United States.

ACH payments are commonly used for direct deposits of payroll, government benefits, tax refunds, and for direct payment of bills like mortgages, utilities, and subscriptions. They are also used for person-to-person transfers through services like Zelle and for business-to-business payments.

Key features of ACH payments include:

  • Processing time: Typically 1-3 business days, though same-day ACH is becoming more common
  • Cost: Generally less expensive than wire transfers or credit card processing
  • Security: Highly secure and regulated by NACHA (National Automated Clearing House Association)
  • Reversibility: Unlike wire transfers, ACH payments can be reversed in certain circumstances
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