The Automated Clearing House (ACH) is an electronic network used for processing and transferring funds between banks and financial institutions. It facilitates the direct transfer of money between accounts, typically used for transactions such as payroll deposits, bill payments, and other types of electronic transfers.
The ACH network operates in batches, meaning that transactions are collected and processed in groups rather than individually in real time. This system is designed to streamline and automate financial transactions, making them more efficient and reducing the need for paper checks.