Automated Clearing House - ACH
An electronic funds-transfer system run by the National Automated Clearing House Association. This payment system deals with payroll, direct deposit, tax refunds, consumer bills, tax payment, and many more payment services.
Investopedia Commentary
The use of electronic clearing houses to facilitate electronic transfers of money has increased efficiency and timeliness of government and business transactions.
Related Links
Electronic Trading Tutorial
What Is Money?
See also: Clearing Corporation, Clearing House, Social Security, Transfer Payment
Also spelled: ACH