What is Automated Clearing House - Solidgate

Automated Clearing House


Automated Clearing House (ACH) is an electronic funds transfer system widely used for financial transactions in the United States. Governed by the National Automated Clearing House Association (NACHA), the ACH network enables the secure and efficient transfer of funds between banks and financial institutions.

ACH transactions include direct deposits, payroll payments, bill payments, and various electronic fund transfers. Unlike credit card transactions, ACH payments involve the direct transfer of funds from one bank account to another. ACH transactions typically have lower processing fees compared to other payment methods, making them an attractive option for businesses and customers. The ACH network operates on batch processing, with transactions grouped and processed in scheduled intervals.

The convenience, cost-effectiveness, and reliability of ACH transactions contribute to their widespread adoption for various financial activities, offering an electronic alternative to traditional paper checks and wire transfers.


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