Q:

What does ACH stand for?

A:

Quick Answer

ACH stands for "Automated Clearing House." ACH is used for electronic payments and money transfers, and therefore, companies and individuals can use the ACH network to move money instead of using written checks, wire transfers, cash or credit card networks.

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Full Answer

ACH is commonly used for direct deposit from an employer to an employee's bank account, automatic payment of recurring bills such as utility bills or a mortgage, payments from a business to its vendors and suppliers, and transfers of money from a brick-and-mortar bank to an online bank. For consumers, the main drawback of using the ACH network is that businesses have direct access to one's checking account.

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