What does ACH stand for in relation to electronic payments?

ACH stands for Automated Clearing House, which is a network that facilitates electronic payments and money transfers between banks and financial institutions. This system allows for the automation of processes that were traditionally handled by checks, making transactions faster, more efficient, and less expensive.

The Automated Clearing House plays a crucial role in processing direct deposit payroll, electronic bill payments, and recurring transfers. It simplifies the movement of funds electronically, ensuring that transactions are settled securely and in a timely manner. By using ACH, individuals and businesses are able to transact without needing to handle physical checks, contributing to a more streamlined banking experience.