ACH (Automated Clearing House) is a network established for financial transactions within the United States of America. This network allows various banks to communicate in an efficient manner regarding transactions corresponding with accounts held by the banks. This allows originators the ability to move funds directly to and from accounts.
ACH transactions are utilized for many reasons, some of which include the low cost associated with ACH in comparison to credit cards, the efficiencies it reigns over traditional check acceptance, and the flexibility it provides an originator to conduct transactions with their customers once a product or service has been rendered.
Processing transactions via ACH can be applied to numerous verticals and serves a broad spectrum of industries. More popular use cases for ACH implementation are direct deposit for payroll, loan payments, bill payments, subscription services, and many others.
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