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ACH
(Automated Clearing House)
ACH (Automated Clearing House) is a U.S. electronic network for batch-processing transactions like payroll direct deposits, bill payments, and peer-to-peer transfers (e.g., Venmo). Operated by Nacha, it’s cheaper and slower than wire transfers (e.g., SWIFT).
ACH transactions take 1–3 business days and cost cents per transfer versus dollars for wires. Common uses include employer paychecks (82% of U.S. workers use ACH), IRA contributions, and autopay for mortgages. The CFPB regulates ACH for fraud protection (e.g., disputing unauthorized debits). Unlike SWIFT Codes, ACH uses routing/account numbers. Fintechs leverage ACH APIs for apps like YNAB.
ACH transactions take 1–3 business days and cost cents per transfer versus dollars for wires. Common uses include employer paychecks (82% of U.S. workers use ACH), IRA contributions, and autopay for mortgages. The CFPB regulates ACH for fraud protection (e.g., disputing unauthorized debits). Unlike SWIFT Codes, ACH uses routing/account numbers. Fintechs leverage ACH APIs for apps like YNAB.