What is an Automated Clearing House (ACH)?

An automated clearing house is a highly reliable and efficient nationwide batch-oriented electronic funds transfer system governed by NACHA Operating Rules, which provide for the interbank clearing of electronic payments for participating depository financial institutions.  The Federal Reserve and Electronics Payments Network act as ACH Operators, central clearing facilities through which financial institutions transmit or receive ACH entries.

Electronic Merchant Systems Payment Processing Glossary :

Defining key payment processing and merchant services industry terms to help business owners make better decisions.




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