In the context of electronic payment, what does ACH stand for?

ACH stands for Automated Clearing House, which is a network used for electronically processing financial transactions in the United States. It primarily facilitates direct deposits, electronic bill payments, and the transfer of funds between bank accounts. The ACH network allows for the efficient movement of funds without the need for paper checks, making it a critical component of the modern financial system. It enables faster and more reliable transactions, contributing to the increased automation and efficiency of payment processing.

Understanding the correct term is integral because it reflects the system responsible for many aspects of electronic banking and payment services, facilitating transactions that are vital for both consumers and businesses alike.