Automated Clearing House
/ˈɔːtəˌmeɪtɪd ˈklɪərɪŋ haʊs/
Definitions
- (n.) A network used for electronically transferring funds between banks to execute payments such as direct deposits and bill payments.
The company processed its payroll through the automated clearing house system.
Forms
- automated clearing house
- automated clearing houses
Related terms
See also
Commentary
The term specifically denotes a computerized network facilitating batch processing of financial transactions, commonly used in U.S. banking law and payment systems. Legal documents should clearly specify the role of the Automated Clearing House in payment instructions to avoid ambiguity.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.