ACH stands for Automated Clearing House.
It is an electronic network between banks and credit unions.
It’s used for direct deposits, bill payments, payroll, tax refunds, vendor payments, and many recurring transfers (like rent, subscriptions, or utilities).
It’s operated by Nach (National Automated Clearing House Association), it handles trillions of dollars annually in batch-processed transfers (usually same-day or next-day settlement).
Banks will settle up at the end of the day and it usually takes 2-3 days for the funds to clear for the customer.
For example let’s say Bank of America had $80,000 of small transactions that day going into Wells Fargo & Wells Fargo has $100,000 of small transactions that are going into Bank of America that day….. At the end of the day they’ll settle up on the ACH network where one large $20,000 payment will be paid from Wells Fargo to Bank of America.
This happens between all Banks and Credit Unions and their ledgers will adjust and eventually be finalized by the master ledger at the Federal Reserve.
It is an electronic network between banks and credit unions.
It’s used for direct deposits, bill payments, payroll, tax refunds, vendor payments, and many recurring transfers (like rent, subscriptions, or utilities).
It’s operated by Nach (National Automated Clearing House Association), it handles trillions of dollars annually in batch-processed transfers (usually same-day or next-day settlement).
Banks will settle up at the end of the day and it usually takes 2-3 days for the funds to clear for the customer.
For example let’s say Bank of America had $80,000 of small transactions that day going into Wells Fargo & Wells Fargo has $100,000 of small transactions that are going into Bank of America that day….. At the end of the day they’ll settle up on the ACH network where one large $20,000 payment will be paid from Wells Fargo to Bank of America.
This happens between all Banks and Credit Unions and their ledgers will adjust and eventually be finalized by the master ledger at the Federal Reserve.