What is ACH payment?

[deepak]

I keep seeing ACH payments on bank statements. Can someone explain what ACH payment means, how it’s processed, and when it’s commonly used?

 

[Frederick]

An ACH (Automated Clearing House) payment is an electronic bank-to-bank transfer processed through a central network. It is commonly used for direct deposits of payroll, monthly bill payments, and online transfers. Unlike wire transfers, which are often instant but expensive, ACH payments are typically processed in batches, making them a more cost-effective but slightly slower option for moving money between financial institutions.

 

[James Miller]

An ACH (Automated Clearing House) payment is a type of electronic bank-to-bank transfer processed through a central network. It is commonly used for direct deposits, payroll, and automated bill payments. Unlike wire transfers, ACH payments are often processed in batches, which makes them more cost-effective but slightly slower, usually taking one to three business days to complete.

 

[Darcey]

An ACH payment is an electronic bank transfer processed through the Automated Clearing House network. It enables direct deposits, bill payments, and transfers between bank accounts without using paper checks. ACH payments are secure, cost-effective, and commonly used for payroll, recurring subscriptions, and business-to-business transactions.

 

[kebido]

A bank-to-bank transfer is an electronic bank-to-bank payment done via a central clearinghouse known as an ACH (Automated Clearing House). Compared to wire transfers, ACH operates in batches thus is an effective method of processing direct deposits, bill payments, and recurring B2B transactions.