ACH Transfer
ACH (Automated Clearing House) Transfer is a U.S. electronic funds transfer system that processes large volumes of credit and debit transactions in batches, such as direct deposits, bill payments, and business-to-business payments. It is operated by Nacha (formerly the National Automated Clearing House Association) and facilitates secure, low-cost transfers between bank accounts. ACH transfers are widely used for payroll, tax refunds, and recurring payments due to their reliability and efficiency.
Developers should learn about ACH transfers when building financial applications, payment processing systems, or fintech platforms that require handling bank-to-bank transactions in the U.S. It is essential for implementing features like direct deposit for payroll, automated bill payments, or peer-to-peer transfers in compliance with U.S. banking regulations. Understanding ACH helps ensure secure, cost-effective, and scalable payment solutions compared to alternatives like wire transfers or checks.