Glossary definition

What is the Automated Clearing House (ACH)?

Automated Clearing House

ACH is an electronic network for processing financial transactions in the United States through the NACHA (National Automated Clearing House Association) system.

Online payroll uses the NACHA system for employee direct deposit, as well as for tax, vendor, and fee payments. The NACHA system is not just for payroll; other businesses and consumer transactions are made through the system.

ACH credit transfers include direct deposit payroll, and vendor payments, consumer payments on insurance premiums, mortgage loans, and other kinds of bills.

 

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