ACH Payment
Definition
An electronic bank-to-bank transfer in the US processed through the Automated Clearing House network, used for payroll, vendor payments and direct debits. It is lower-cost but slower than card or wire payments.
Related Terms in Banking & Payments
Wire Transfer
A direct, usually same-day electronic transfer of funds between banks, used for large or time-critical payments. Wires are fast and final but typically cost more than ACH or standard transfers.
NEFT
National Electronic Funds Transfer, an India-wide system for one-to-one bank transfers settled in batches. It suits routine payments without the instant or high-value focus of IMPS and RTGS.
RTGS
Real Time Gross Settlement, an Indian system for high-value interbank transfers settled individually and in real time. It is used where large amounts must move immediately and with finality.
IMPS
Immediate Payment Service, an Indian system for instant interbank fund transfers available around the clock, including on holidays. It bridges the gap between batch NEFT and high-value RTGS.
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