Automated Clearing House - ACH

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DEFINITION of 'Automated Clearing House - ACH'

An electronic funds-transfer system run by the National Automated Clearing House Association. This payment system deals with payroll, direct deposit, tax refunds, consumer bills, tax payments and many more payment services.

BREAKING DOWN 'Automated Clearing House - ACH'

The use of electronic clearing houses to facilitate electronic transfers of money has increased efficiency and timeliness of government and business transactions.

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