The ACH stands for Automated Clearing House, which is a network of nationwide electronic funds systems that are directed by the NACHA Operating Rules. These control the processing of large sums of money in small amounts through electronic transfers such as those used with credit cards, direct deposit from payroll or other sources and similar products for the movement of funds. ACH services are widely used in business and in personal means and it's estimated that over 8 billion transactions were processed in 2002. This number continues to rise as technology increases in productivity.
With the changes made in technology it is no wonder that there are so many transactions completed with the use of ACH services in the United States. These transactions include such things as the increasingly popular e-check which allows individuals to pay online or by telephone using an e-check instead of a paper check. Consumers are becoming more adept to using the fastest means of doing everything including paying their bills. This is likely due to the instant gratification obtained through the use of computers. With so many easy services available it has become simple to pay for things and purchase things without having to leave home or the office.
ACH services are one of the safest means of moving funds in the United States. The rules and regulations that run the process are governed by NACHA which is the National Automated Clearing House Association. The largest of the worlds clearing house operators is the Federal Reserve Banks combined. The major uses of the ACH are direct depositing of payroll, including social security, debit for bills such as a mortgage, car payments and other bills and federal, local and state tax payments. The government uses the system to pay government customers and employees as well.
The ACH services offer the fast method of payment and deductions for many consumers and government offices as well as business to business. This makes it easy to do business online or by phone and allows business to move faster than ever before. The ability to pay for things with such speed and to move funds with such accuracy offers individuals a better way to do business all over the world. With such cross board payments available it makes everything from real estate purchases to last minute travel within the range of possibility for nearly anyone. This method of doing business has become the normal for many businesses today.