ACH
Business & Finance abbreviation · Banking
| Stands for | Automated Clearing House |
|---|---|
| Categories | Business & Finance |
ACH stands for Automated Clearing House, a banking abbreviation.
US electronic payments network that moves money between bank accounts in batches, used for direct deposit of paychecks, bill payments, Social Security benefits, business-to-business payments and person-to-person transfers. It is governed by Nacha rules and operated by the Federal Reserve and The Clearing House.
Example: Your paycheck arrives by ACH direct deposit every other Friday.
Usage notes
ACH payments are cheaper but slower than wire transfers; standard transfers typically settle in one to two business days, and Same Day ACH has been available since 2016. The network handled more than 30 billion payments in 2023. Unlike wires, ACH debits can be returned in limited circumstances, such as unauthorized transactions.
Related abbreviations
More banking abbreviations
- A/C – Account
- ABA – American Bankers Association (routing number)
- ALLL – Allowance for loan and lease losses
- ALM – Asset-liability management
- AML – Anti-money laundering
- ATM – Automated teller machine
- BACS – Bankers' Automated Clearing Services
- BG – Bank guarantee
- BHC – Bank holding company
- BIC – Business Identifier Code
- BIN – Bank identification number
- BSA – Bank Secrecy Act