An ACH, or Automated Clearing House, is a computer-based electronic network for processing transactions between participating financial institutions. It is used for all kinds of fund transfer transactions, including direct deposit of paychecks and monthly debits for routine payments. ACH transfers are electronic, bank-to-bank money transfers processed through the Automated Clearing House Network. 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 transfers are often free, depending on where you bank and the type of transfer involved. They are significantly cheaper than card-based solutions, and in almost all cases, ACH is significantly cheaper than card-based solutions. 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.