ACH (Automated Clearing House).
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.
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
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
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Plain-English answers from our glossary. Receipts included. Never advice.
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