Electronic Fund Transfer and the ACH

The primary network for electronically settling monetary transactions between financial institution in the United States, theAutomated Clearing House (ACH) is a highly reliable and efficient nationwide batch-oriented electronic funds transfer system.

Governed by the rules set forth by the National Automated Clearing House Association (NACHA), the ACH Network provides for the interbank clearing of electronic payments for roughly 98% of the depository financial institutions in the United States. Through this system, the Federal Reserve and Electronic Payments Network act as ACH Operators, providing the central clearing facilities through which financial institutions transmit or receive ACH entries.