A form of electronic payment that involving sending money directly from one bank account to another, via a clearing house. ACH (automatic clearing house) transfers are widely used forms of domestic bank transfers carried out by means of online or electronic payments. The banks involved must have their names registered in the network in order to avail the services of an automatic clearing house. The ACH network consists of a number of banks and other financial institutions that transfers funds from one to another in the same network.

As opposed to wire transfers, bank transfers are conducted through local payment routes, such as ACH. Bank transfers are the most popular payment method, particularly among B2B payment methods. As a payment method, it is quicker and less costly compared to the SWIFT network. Bank transfers allow companies and individuals access to local payment venues.

ACH payments are usually made in the form of direct deposits and direct payments.