ACH Definition (Automated Clearinghouse)

ACH stands for Automated Clearinghouse, a network for electronic financial transactions in the U.S. With ACH, financial institutions can transfer funds between accounts.

ACH Extended Definition

ACH is an alternative to cash transactions and allows companies to streamline their operations, such as paying vendors, offering direct deposit to employees, and allowing customers to pay online.

Federal, state, and local governments also use the ACH network to process electronic financial transactions.

The ACH system is run by the National Automated Clearing House Association (NACHA).

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Last Updated By

Andrew Freiman | Feb 23, 2023