Automatic Clearing Houses (ACHs) facilitate the payment of bills without the need to write a check. An ACH can be used to create automatic monthly being payments so that the payer doesn’t have to initiate the payment of the bills. It includes the benefits of postal savings, no forgotten payments, and time savings. This payment system deals with payroll, direct deposit, tax refunds, consumer bills, tax payments, and many more payment services. The ACH system is designed for the domestic transfer of payments.
The ACH network acts as the central clearing facility for all Electronic Fund Transfer (EFT) transactions that occur nationwide, representing a crucial link in the national banking system. The ACH Network is a batch processing system in which financial institutions accumulate ACH transactions throughout the day for later batch processing. This ACH network acts as a financial hub and helps people and organizations move money from one bank account to another. The system is designed for high-volume, low-value payments, and charges fees low enough to encourage the transfer of low-value payments. The system is designed to accept payment batches so that large numbers of scheduled payments can be made at once.
