Report post

What does ACH mean in banking?

ACH stands for Automated Clearing House Network. The name refers to the fact it coordinates paperless electronic payments or automated money transfers between banks and financial institutions. In the US, ACH can sometimes be referenced casually as direct deposit, direct pay or electronic check.⁴ What are ACH payments?

What are examples of ACH transfers?

ACH transfers include external funds transfers, person-to-person payments, bill payments and direct deposits from employers and government benefit programs. Business-to-business payments are another example. (If you own a small business, see our guide to ACH transfers for businesses.)

What is the difference between ACH and direct deposit?

ACH transfers are electronic, bank-to-bank money transfers processed through the Automated Clearing House Network. Direct deposits are transfers into an account, such as payroll, benefits, and tax...

Are ACH debit transfers free?

ACH debit transfers, including payroll direct deposits and most bill payments, are typically free. If you need expedited bill payments, there can be fees. “ACH transfers such as bill payments tend to be free, while transfers between linked accounts at different banks are either free or about $3.”

Related articles

The World's Leading Crypto Trading Platform

Get my welcome gifts