Which of the following best describes an Automated Clearing House (ACH)?

The best description of an Automated Clearing House (ACH) is a paperless funds transfer system. ACH is a network that enables the electronic movement of money between bank accounts. It facilitates a variety of transactions, including direct deposits, bill payments, and other electronic money transfers without relying on physical checks or cash. This system allows for efficient, automated processing of large volumes of transactions, making it a critical component of modern financial operations.

In contrast, a paper check processing method relies on physical checks and involves a more manual approach to transferring funds. A physical bank branch service refers to traditional banking services conducted in-person, which is unrelated to the electronic nature of ACH transactions. An international wire transfer system focuses on transferring money across international borders, which is different from the domestic focus of ACH transactions. Therefore, the distinction that ACH operates as a paperless system is what makes it the correct choice in this context.