The ACH (Automatic Clearing House) network is a nationwide, reliable electronic funds transfer system for interbank clearing of payments, governed by NACHA rules. The Federal Reserve and Electronic Payments Network serve as central clearing facilities for ACH transactions.
ACH is an acronym that stands for Automatic Clearing House. The ACH network is a highly reliable and efficient nationwide batch-oriented electronic funds transfer system, governed by the NACHA Operating Rules, which provide for interbank clearing of electronic payments for participating depository financial institutions. The Federal Reserve and Electronic Payments Network act as ACH Operators, central clearing facilities through which financial institutions transmit or receive ACH entries.