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Consumer and business transfers between bank accounts.Online payments to credit-card and utility companies.Today, the ACH network is widely used for all kinds of electronic transfers, including: Today, businesses prefer the convenience of ACH deposits for both sending and receiving payments because they’re fast, easy to accept and easy to track. Clearinghouse associations banded together to expand the concept to process private payroll checks, and the service became more popular as digital technology advanced. Air Force personnel receive their paychecks promptly via direct deposit. It is operated by the Federal Reserve and the Electronic Payments Network (EPN), a digital counterpart to the Federal Reserve owned by the Clearing House Payments Co., a consortium of more than 20 major banks.ĭeveloped in the late 1960s and early 1970s, the federal government initially used the ACH network to help U.S. The network is administered by Nacha, formerly known as the National Automated Clearing House Association, a trade organization representing the financial services industry. The ACH network is a digital system used to process electronic payments for government agencies, businesses and consumers in the U.S. How does an ACH transaction work and how long does it take?.What is the difference between an ACH deposit and payment?.Let’s go through what you need to know about an ACH deposit, including: The ACH processed $61.86 trillion in payments in 2020 alone, and it can help your small business make and accept payments. A deposit via the Automated Clearing House (ACH) Network is an electronic, automatic transfer of funds between banks.