Definition – What is Automated Clearing House Network (ACH)
Automated Clearing House Network, in short, known as ACH Network – is an electronic payment processing system in the United States. It processes a large volume of transactions including direct debit, consumer bills, tax refund, tax payment, e-commerce, direct deposit, payroll and any other kinds of bills.
The ACH Network managed by NACHA – National Automated Clearing House Association, since its development in 1974. Nowadays ACH Network is working with more than 10,000 financial institution to easily move money bank to bank by following the modern electronic fund transfer system.
According to NACHA in 2019, The ACH network processed more than $51.2 trillion by making nearly 23 23 billion transections.
Explanation – ACH Network
The idea of ACH Network developed in the 1960s. The first standard of ACH Network was a payroll payment standard. Now the features of ACH made it much reliable and popular for moving money bank to bank by following a numbers of processes. ACH can be used by individuals, organization, government and other institutions for moving money with very fast processing time and latency-free.
ACH Networks are connecting all the financial institutions in the U.S with a very secure and efficient way to move the money and information directly one bank to another. Now ACH Network is attempting to accelerate a digital future of global financial services.