What is ACH?
The electronic payment program replaces payment by check with electronic transfer of funds directly to the supplier’s designated bank account. The electronic payment program enables the Commonwealth of Pennsylvania to process payments electronically via the Automated Clearinghouse (ACH), an electronic network for financial transactions. This electronic payment program eliminates the time associated with processing, mailing, handling and depositing the checks, eliminates the risk of lost or stolen checks, simultaneously promoting accuracy, reliability and security. The electronic transfer of funds enables the supplier to have immediate access to the funds. To participate in ACH, Administrative Users must Log On to the PA Supplier Portal, and then select “Manage Bank Data & Product Categories” from the left navigation bar.
ACH stands for Automated Clearing House. The ACH network is a highly reliable and efficient nationwide batch-oriented electronic funds transfer system governed by the National Automated Clearing House Association (NACHA) ACH Operating Rules and Guidelines, which provide for the interbank clearing of electronic payments for participating depository financial institutions. The Federal Reserve Banks are the nation’s largest ACH operator and provide central clearing facilities through which financial institutions transmit or receive ACH entries.
