ACH (Automated Clearing House)
The electronic network used to transfer funds between bank accounts; it is how your processing deposits land in your checking account.
ACH (Automated Clearing House) is the electronic funds transfer network operated by NACHA (the National Automated Clearinghouse Association). It handles direct deposits, bill payments, and, most relevant to merchants, the settlement deposits from your processing account to your bank.
When you close your daily batch, your acquiring bank initiates an ACH credit to your DDA for the net settlement amount (gross sales minus interchange, fees, and any chargebacks). Standard ACH funding takes 1–2 business days.
ACH is also used for debit transactions in some contexts: bank transfers, recurring billing where a customer provides bank account information rather than a card, and checks converted to electronic items at point of sale.
For merchants, ACH is largely invisible: it's the plumbing behind your daily deposit. The main practical consideration is the 1–2 day funding lag, which affects cash flow planning. Same-day ACH is available through many processors for a premium.
See how your effective rate compares to what competitive IC+ pricing would cost you.
Open CalculatorMore terms to know.
You now know more than most merchants.
Find out if your processor knows you know.
Upload your statement. We'll show you every fee by name, what each one costs you annually, and what you'd pay with a competitive processor. Same day or less, free.
Get My Free Statement Audit