What Is the Automated Clearing House (ACH)?

By Kristi Waterworth – Updated Sep 9, 2025 at 12:16 PM EST

Key Points

ACH processes payments like direct deposits and e-commerce transactions domestically.
Since 2017, transactions under $100,000 may qualify for same-day ACH, improving speed.
Nacha, formed in 1974, digitized checks and introduced same-day ACH to expedite payments.

If you've ever sent or received a domestic electronic payment or even written a check in the 21st century, you've had a brush with the Automated Clearing House (ACH). It's there to help facilitate payments, but it has been delivering payment innovations for decades.

Loading paragraph...

Person uses phone to deposit check. — Image source: Getty Images.

Loading image...

Loading paragraph...

Federal Reserve

The Federal Reserve, often referred to as “the Fed,” is the central bank of the United States.

Loading paragraph...

5 Bank Stocks That Pay Dividends

If you're looking for bank stock dividends, these banks deliver the goods.

Are Bank Stocks Safe? The Pros and Cons

The bank itself is a safe place to put your money. But what about bank stocks?

5 Bank Stocks That Pay Dividends

If you're looking for bank stock dividends, these banks deliver the goods.

3 Most Important Financial Statements

When researching companies, the financial statement is a great place to start.

Loading hub_pages...

Loading paragraph...

About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

TMFMaldivesBlue

@MaldivesBlues

The Motley Fool has a disclosure policy.