What is an Automatic Clearing House?
The Automatic Clearing House is one of the central functions that make modern banking possible. As a network that allows for the orderly and timely transfer of funds between accounts open with different banking institutions, the ACH makes it possible for many people to access funds in their accounts much more quickly. Here are some of the ways that the Automatic Clearing House impacts the flow of finances every day. One of the most important aspects of the Automatic Clearing House is the orderly processing of electronic funds transfer protocols. Each EFT transfer has to coordinate so that funds are removed from one financial account, moved efficiently through the system to terminate in a deposit to a different financial account. The electronic funds transfer network ensures that these transfers are conducted quickly and accurately. For many years, this function involved moving funds from an account at one bank to a different account at another bank. Today, the use of automated teller m
