Automatic Clearing House
/ˌɔːtəˈmætɪk ˈklɪərɪŋ ˌhaʊs/
Definitions
- (n.) A network used for electronically transferring funds between banks for payments such as direct deposits and bill payments.
The employer used the Automatic Clearing House to deposit employees' salaries directly into their bank accounts.
Forms
- automatic clearing house
- automatic clearing houses
Related terms
See also
Commentary
Typically capitalized and abbreviated as ACH, the term refers to an established interbank system widely used in the U.S. for batch processing of electronic payments; care should be taken to distinguish it from other payment networks in legal drafting.
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.