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Banking
Term 030 of 1034
1 min readTwo voicesBanking

ACH (Automated Clearing House).

The network that moves money electronically between U.S. bank accounts in batches. It is what runs direct deposit, most bill pay, and bank transfers.
Verified June 2026 · Source: Federal Reserve Financial Services
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ACH (Automated Clearing House)
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In plain English

ACH is the plumbing behind everyday electronic money movement in the United States. Instead of sending each payment instantly one at a time, banks bundle them and settle in batches through the network. It is how your paycheck lands as direct deposit, how autopay pulls a bill, and how you move money between banks. It is cheap or free, but it is not instant: a transfer usually takes one to a few business days, though same-day ACH exists.

Most useful ages
18 to 65

01Why it matters

Knowing a transfer runs over ACH tells you what to expect: low or no fee, but a settlement delay of one to a few business days, which matters when you are timing a bill against a paycheck.

02The math, step by step

When you set up direct deposit with an employer, your pay arrives over the ACH network. A standard ACH transfer between two banks typically posts in one to three business days; same-day ACH can settle the same business day for eligible transfers.

03What this is NOT

Do not confuse with a wire transfer

ACH is not a wire transfer. Wires move individually and usually settle the same day for a fee; ACH moves in batches, costs little or nothing, and takes longer.

04Receipts

Every figure on this page is sourced to a primary document. Tap to open the original.

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Last reviewed June 6, 2026 · Reviewer Joseph Citizen, Founder