What is ACH?

The Automated Clearing House (ACH) Network

The ACH Network is a highly reliable and efficient nationwide batch-oriented electronic funds transfer system governed by the NACHA OPERATING RULES which provide for the interbank clearing of electronic payments for participating depository financial institutions. The Federal Reserve and Electronic Payments Network act as ACH Operators, central clearing facilities through which financial institutions transmit or receive ACH entries.

ACH payments include:

• Direct Deposit of payroll, Social Security and other government benefits, and tax refunds;
• Direct Payment of consumer bills such as mortgages, loans, utility bills and insurance premiums;
• Business-to-business payments;
• E-checks;
• E-commerce payments;
• Federal, state and local tax payments.