ACH Transfer
An electronic bank-to-bank transfer processed through the Automated Clearing House network.
What is ACH Transfer?
An ACH (Automated Clearing House) transfer is an electronic bank-to-bank funds movement processed through the Nacha-operated ACH network. ACH transfers include direct deposit of paychecks, automatic bill payments, and peer-to-peer payments via apps like Venmo or Zelle. Standard ACH transfers settle in 1–3 business days; same-day ACH is available for an additional fee. ACH transfers are generally free or very low cost compared to wire transfers and can be reversed in some circumstances (unlike wires). Most recurring payments — mortgages, utilities, subscriptions — use ACH.
Example
An employer deposits paychecks via ACH on Fridays. The bank receives the payroll file Wednesday, processes it through the ACH network, and credits employee accounts before business opens Friday — a 2-day settlement.
Source: Nacha — ACH Network