Investor Glossary-achInvestor Glossary-achInvestor Glossary-achInvestor Glossary-achInsightful stock market charts - Click here
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


The HTML to link to this page

ACH, an abbreviation for Automated Clearing House, is a networked system of over 10,000 financial institutions used to process electronic fund transfers. The ACH network is overseen by NACHA, the Electronic Payments Association, which since 1974 has been running ACH. ACH transactions are used frequently for payroll transactions, direct deposits, bill payment, tax payments and tax refunds. Processing funds using an ACH transaction is a more cost effective way of moving cash between accounts. Instead of sending payments separately, ACH transactions are processed in a batch mode, hence the economy of scale. In fact, many businesses and government entities use ACH transactions exclusively to process their payroll transactions, resulting in higher efficiency and lower costs of paying employees. All ACH transactions must adhere to rules set forth by NACHA. These rules, also known as the NACHA Operating Rules, are reviewed periodically and are amended as needed through a deliberative process with ACH network participants (i.e. credit unions, small businesses, commercial and community banks, corporations, industry vendors, and consumer advocates.)

Rate this ACH definition...

Learn about investing with the Investor Glossary Term of the Day

Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.

Popular Terms: APR, required rate of return, in escrow, per diem, stock split, cancelled check, labor relations, liquidity ratio, inflation, 401a, limit order, risk management, Key Rate Duration, retained earnings, FICO score, quality assurance, 144a, real GDP, command economy, dividends payable, deferred revenue, class C shares, stock market close, deferred tax, balance sheet, reverse mortgage, phantom income, ex-dividend, option premium, LIBOR, annual return, debt service coverage, open position, 1035 exchange, current ratio, EBITDA, implied volatility, average price per share, wholly-owned subsidiary, Zero Cost Collar, irrevocable trust, ex-dividend date, FTSE, diluted share, covered put, minority interest, VIX, 1031 exchange, margin rate

Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use