By: Dwolla,

Have you seen the acronym ACH before? You know it has something to do with payments, and you’ve asked yourself, “What does that actually mean?” It’s not so much what it means, but rather what ACH stands for…

ACH stands for the Automated Clearing House.

The Automated Clearing House is the system responsible for moving funds between bank accounts within the United States. When a transaction moves between bank accounts, it’s considered an ACH transfer.

So when you ask yourself, “What does ACH mean?” You really want to ask,”What does ACH do?”

The Automated Clearing House is managed by NACHA (National Automated Clearing House Association) and is separate from the credit card networks. NACHA, in collaboration with the government, controls the development, regulations, etc. around the ACH network.

For a detailed understanding of the ACH network and how transactions work, check out some of Dwolla’s bank transfer resources:

At Dwolla, we are experts in facilitating ACH transfers. If you’re curious how your business, new application or platform could integrate our ACH API, reach out below.

Get started with ACH transfers

We'll help you design your ideal payments experience.



We’ve sent you a message to kick off the conversation with our team. Please check your inbox.


There was an error and the form was not submitted.

Financial institutions play an important role in the Dwolla network.

Dwolla, Inc. is an agent of Veridian Credit Union and Compass Bank and all funds associated with your account in the Dwolla network are held in pooled accounts at Veridian Credit Union and Compass Bank. These funds are not eligible for individual insurance, including FDIC insurance and may not be eligible for share insurance by the National Credit Union Share Insurance Fund. Dwolla, Inc. is the operator of a software platform that communicates user instructions for funds transfers to Veridian Credit Union and Compass Bank.