Investor Glossary-achInvestor Glossary-achInvestor Glossary-achInvestor Glossary-achInsightful stock market charts - Click here
investor
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

ACH

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


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