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.

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