Definition of ACH (Automated Clearing House)

Payroll Definitions

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ACH (Automated Clearing House)

ACH, or Automated Clearing House, is a nationwide network that allows financial institutions to transfer funds between accounts.

ACH Extended Definition
The ACH is an electronic funds transfer system run by the National Automated Clearing House Association. Individuals can make payments online and electronically deposit funds in financial institutions through the ACH.

The ACH system covers payment services including:

  • Payroll
  • Consumer bills
  • Tax payments
  • Tax refunds
  • Direct deposits
  • Many more

ACH has increased the convenience and efficiency of business as well as government financial transactions.

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Last Updated By

Rachel Blakely-Gray | Feb 14, 2023

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