A system of computer networks that allows banks to transfer funds among themselves; used to make recurring, relatively low-value payments, such as the direct deposit of salaries.
Organization established by banks in the same locality, whose central facility receives electronic payments from banks, distributes funds between banks, exchanges checks and other instruments, and settles transactions and net balances. Each electronic payment you make is processed through this clearinghouse. Abbreviation: ACH
(ACH) Commonly known as Direct Deposit. A system used to electronically transfer funds through a clearinghouse facility directly into the payee's bank account.