Automated Clearing House (ACH)

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The Automated Clearing House or ACH is a secure system to transfer funds that acts as the central clearing facility for Electronic Fund Transfer (EFT) transactions.

ACH is a computerized facility used by member depository institutions to electronically combine, sort, and distribute inter-bank credits and debits. ACHs process electronic transfers of government securities and provided customer services, such as direct deposit of customers’ salaries and government benefit payments (i.e., social security, welfare, and veterans’ entitlements), and preauthorized transfers.

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