ACH

Acronym for Automated Clearing House, a U.S. financial network used for electronic payments and money transfers.

More Details

The Automated Clearing House (ACH) is an electronic network that processes large volumes of credit and debit transactions in the United States. The ACH network facilitates the transfer of funds between banks and other financial institutions, allowing individuals and businesses to make payments and transfer funds electronically.

Example

If an individual wants to pay a bill online, they might enter their bank account information and the recipient's information into the website or app of the company they are trying to pay. The company would then initiate an ACH transaction, sending a request to the individual's bank to transfer the funds from their account to the recipient's account. The ACH network would process this transaction, debiting the individual's account and crediting the recipient's account, allowing the funds to be transferred quickly and securely.

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