Automated Clearing House

From WikiMD's Food, Medicine & Wellness Encyclopedia

A nationwide mechanism that processes electronically originated debit and credit transfers for any participating institutions nationwide. This electronic payment delivery system is most often used to process low-dollar, repetitive retail payments and pre-authorized recurring payments such as payroll, corporate payments to vendors, Social Security payments, insurance premium payments and utility payments. The ACH is an alternative to paper checks and handles billions of payments annually. Also called ACH.


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Contributors: Prab R. Tumpati, MD