ACH transfer.
In plain English
An ACH transfer sends money from one bank account to another over the Automated Clearing House, a network that batches and processes electronic payments across US banks. It powers direct deposit of paychecks, automatic bill payments, and app-to-bank transfers. ACH is cheap or free and reliable, but not instant: transfers usually settle in one to a few business days, though same-day ACH exists. It is different from a wire transfer, which is faster and costs more.
01Why it matters
ACH is how most everyday electronic money moves, so knowing it is not instant explains why a transfer or paycheck can take a day or two to land.
02The math, step by step
Your employer pays you by direct deposit, an ACH transfer. It is initiated a day or two before payday so the money clears the network and lands in your account on time.
03What this is NOT
An ACH transfer is NOT a wire transfer. ACH is batched, low-cost, and takes a day or more; a wire is sent individually, usually settles the same day, and costs more.