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You Are Here: What does ACH stand for?

What does ACH stand for?

Automated Clearing House (also referred to as ACH) is the network that processes electronic financial transactions in the United States. This contains large volumes of credit and debit transactions in batches from a variety of different types of organizations and businesses. Examples of ACH credit transactions would include direct deposit payroll and payments to vendors made electronically. ACH direct debit transfer examples include consumer payments on things like insurance premiums, mortgage loans, cell phone bills and other monthly types of expenses. Debit transactions also include new applications such as the Point-of-Purchase (POP) with debit and/or ATM cards or electronic check conversions where the merchant scans your check, converts it to an ACH item and then gives your check back to you.

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