ACH System
About ACH System
The Automated Clearing House was established in 1972 by the Federal Reserve Bank of San Francisco. ACH processes batch electronic payments including direct deposits, bill payments, and business to business transfers. The National Automated Clearing House Association, or Nacha, manages the ACH network. ACH grew to process over 30 billion payments annually worth over 80 trillion. Same day ACH was introduced in 2016, accelerating settlement. ACH is slower than card networks but significantly cheaper, making it preferred for large transactions and recurring payments. The system is the backbone of US payroll, government benefits, and business payments. ACH has been criticized for slow adoption of real time settlement compared to systems in other countries.
Related Entries
First Bank Credit Card
The Diners Club card, launched in 1950, was the first universal charge card. Founded by Frank McNama...
ATM Invention
The first ATM was installed at a Barclays Bank branch in Enfield, London, on June 27, 1967. Invented...
Online Banking Origin
Stanford Federal Credit Union launched the first internet banking service in 1994. Security First Ne...