What is Automated Clearing House (ACH)?

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The **Automated Clearing House (ACH)** is a centralized, electronic network in the United States that facilitates high-volume, low-value financial transactions between participating depository institutions, primarily used for direct deposits, direct payments, and business-to-business transfers. Established in the 1970s, the ACH Network is a critical component of the U.S. payment infrastructure, processing billions of transactions annually with high security and efficiency.

Automated Clearing House (ACH)

What is Automated Clearing House (ACH)?

What is the Automated Clearing House (ACH) and how does its batch-processing model function as a payment system?

What are the primary types of ACH transactions and what is their economic significance in the modern U.S. financial system?

How is the ACH Network secured, and what regulatory framework governs the integrity and safety of its transactions?

What are the key advantages and disadvantages of using the ACH Network compared to other payment methods like wire transfers and paper checks?

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