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ACH Network
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In the United States, the ACH Network is the national automated clearing house (ACH) for electronic funds transfers established in the 1960s and 1970s. It is a financial utility owned by US banks, and is one of the largest payments networks in the United States, both by volume and by customer reach; virtually every bank account in the US, whether personal or commercial, is connected to the network.[1]
ACH has a wide variety of consumer and enterprise applications, processing financial transactions for consumers, businesses, and federal, state, and local governments. ACH processes large volumes of credit and debit transactions in batches. ACH credit transfers include direct deposit for payroll, Social Security, and other benefit payments, tax refunds, and vendor payments. ACH direct debit transfers include consumer payments on insurance premiums, mortgage loans, and other kinds of bills.[2]
The rules and regulations that govern the ACH network are established and maintained by the nonprofit National Automated Clearinghouse Association (Nacha).
In 2018, the network processed 23 billion transactions with a total value of $51.2 trillion.[3] Contrast this with the card payment networks in the US, which in the same time period processed under $10 trillion in payments. .[4]
- ^ Benson, Carol Coye; Loftesness, Scott; Jones, Russ (2017). "Core Systems: ACH". Payments Systems in the U.S.: A Guide for the Payments Professional (3rd ed.). Glenbrook Press. pp. 47–64. ISBN 9780982789742. Retrieved December 19, 2024.
- ^ "Federal Reserve Board – Automated Clearinghouse Services". Board of Governors of the Federal Reserve System. Retrieved February 23, 2019.
- ^ "Same-Day Transaction Boom Helps Propel the ACH to a $51 Trillion Year". Digital Transactions. Retrieved February 23, 2019.
- ^ "The Federal Reserve Payments Study: Cards and Alternative Payments, 2021 and 2022". www.federalreserve.gov. Federal Reserve. 2024. Retrieved December 19, 2024.
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