An ACH (Automated Clearing House) transaction is an electronic fund transfer made between banks and credit unions across the ACH network. It is a computer-based electronic network for processing transactions, usually domestic low-value payments, between participating financial institutions. ACH transactions can be used for all kinds of fund transfer transactions, including direct deposit of paychecks and monthly debits for routine payments. Merchants often enable consumers to pay bills via ACH by providing an account number and bank routing number. ACH transactions can be initiated by the payer or the payee, depending on the type of transaction. ACH credit transfers are initiated by the payer and include payments such as direct deposits, payrolls, retail payments, and vendor payments. ACH direct debit collections are initiated by the payee with pre-authorization from the payer, and include consumer payments such as utility bills, insurance premiums, mortgage loans, and other types of bills. ACH transactions are processed in batches, and settlement may be delayed for days, with some settlement risk. While many ACH payments clear quickly, transactions can sometimes take several days to complete due to the way in which an ACH is processed and precautions against fraud and money laundering.