What does ACH mean / stand for?

If you live or operate in the US, you might’ve come across this term before. So what exactly does it mean?


ACH, or Automated Clearing House, is a network used for electronically moving money between bank accounts across the United States. It’s run by an organisation called Nacha (previously NACHA - National Automated Clearing House Association), and may also be referred to as the ACH network or ACH scheme.

Payment processing via the ACH network has existed since the 1970s. Each year, ACH moves financial transactions worth more than $51 trillion (as of 2018, an increase of almost 10 percent from the previous year). These include government, consumer and business-to-business transactions, as well as international payments.

The ACH scheme encompasses a number of different types of payments, which we’ll explore in this chapter.

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