What is ACH?
ACH (Automatic Clearing House) is a system for electronically making payments into, and withdrawals from, the accounts of businesses and individuals. It replaces the slower
and more cumbersome paper-based system of checks, drafts, deposit and withdrawal slips, and other forms of money transfers. Because ACH transactions do not need to be physically transported across the country and because all of the handling can be done via computers and transmissions, it is significantly cheaper and more efficient than paper-based systems. The most common use of the ACH system is for Direct Deposit of payroll funds.