Federal Reserve or the Clearing House Payments Company-a private organization owned by some of the major commercial banks in the US-routes and processes ACH payments.Ībout 50% of the commercial ACH transactions in the U.S. ACH direct deposits: whereby a business or government agency transfers payments to consumers this is a loose term for ACH credit.ACH direct payments: whereby money is transferred to make or receive payments.There are two main categories of ACH payments: How do ACH payments work?ĪCH payments work by transferring money electronically from one bank to another. Trillions of dollars are estimated to be moved via the ACH network every year. The ACH has been in operation since the 1970s, and is run by Nacha (National Automated Clearing House Association). However, it also includes Guam, American Samoa, the Northern Mariana Islands, and the U.S. What is the ACH network and where is it based? ‍ ‍The ACH network is U.S.-based. ACH payments are also referred to as ACH transactions or transfers. use ACH payments to pay salaries, mortgages, bills, and loans as well as to make direct deposits. It is used by businesses, consumers, and the government and encompasses a number of different types of payments What is an ACH payment?Īn ACH payment is a form of bank-to-bank electronic payment used to transfer money between accounts. The Automated Clearing House (ACH) is a payments network that facilitates the electronic transfer of money between bank accounts in the US. The difference between ACH transfers and wire transfers.In the second quarter of 2022, the ACH network moved 7.5 billion payments valued at $19.6 trillion, mainly driven by same-day ACH and business-to-business payments. In 2021, ACH moved 29.1 billion payments valued at more than $72 trillion. The ACH network is governed by Nacha and, as such, payments made through the ACH network must adhere to Nacha's guidelines. The Automated Clearing House (ACH) network processes electronic financial transactions-such as direct deposit and direct payments.

Ach transaction types