Automated Clearing House (ACH)
An Automated Clearing House (ACH) is an electronic network that facilitates the transfer of funds between bank accounts in the United States (and internationally with some variations).
What is Automated Clearing House (ACH)?
Automated Clearing House (ACH) is an electronic network used for processing financial transactions in the United States. The network acts as a central hub that processes large batches of electronic payments efficiently, making it a popular method for B2B (Business-to-Business) payments and consumer payments like direct deposit and bill payments and other automated money transfers.
ACH transactions are known for their efficiency, security and cost-effectiveness compared to traditional payment methods like checks.
The use of ACH reduces the need for physical handling of money, lowering transaction costs and minimizing the risk of errors. Businesses benefit from faster processing times and improved cash flow management. Additionally, ACH transactions are highly secure, reducing the risk of fraud and providing a reliable way to handle regular, recurring payments.
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