ACH stand for Automated Clearing House. It is a system of payment processing through which funds can be transferred between both checking and savings accounts.
In the first financial quarter of 2015, the ACH network recorded $4.7 billion worth of ACH transactions. The number of companies that are using ACH network for handling different types of payments is increasing with each passing day. ACH processing is being used to complete transactions including direct deposit payrolls, social security payments, mortgages, utility bills and insurance premiums.
The ACH network has been in practice for more than 40 years. It is a much more convenient and cost effective method of transactions as compared to the traditional methods like credit/debit cards and paper checks. Over the years, ACH processing has gained a good reputation as a reliable, secure and private way for processing payments.