The automated clearinghouse (ACH) system is a nationwide network through which depository institutions send each other batches of electronic credit and debit transfers. The direct deposit of payroll, social security benefits, and tax refunds are typical examples of ACH credit transfers.
The ACH network is a payments system organized and administered by Nacha, formerly the National Automated Clearing House Association, which was founded in 1974 to improve the U.S. payments
