An ACH (Automated Clearing House) transfer is an electronic transfer of funds from one bank account to another over the ACH network. It is a computer-based electronic network for processing transactions, usually domestic low-value payments, between participating financial institutions. ACH transfers are processed in batches and can be used for a variety of transactions, including direct deposits, payrolls, retail payments, vendor payments, and consumer payments such as utility bills, insurance premiums, mortgage loans, and other types of bills.

ACH transfers are often more cost-efficient and user-friendly than writing checks or paying with a credit or debit card. They can be initiated by the payer for credit transfers or by the payee with pre-authorization from the payer for direct debit collections. ACH transfers can take 1-4 business days to complete, depending on the processing partner used, whether the originator has opted for same-day service, and whether the initial request yields one of 69 possible return codes.

To make an ACH transfer, you need to provide the following details: name, routing/ABA number, account number, and whether the bank account is a business or personal account. ACH transfers are often free, depending on where you bank and the type of transfer involved. For example, your bank may charge you nothing to move money from your checking account to an account at a different bank. And if it does charge a fee, it may be a nominal cost of just a few dollars.