What is ACH?

ACH, which stands for the Automated Clearing House, refers to the bank-to-bank or bank-to-credit union electronic funds transfer. Transfers are batched and transferred according to the rules set by the nonprofit company, Nacha. More than $73 trillion in funds were transferred through ACH in 2021.

Some details about ACH

Here are some important pieces of information you should know when using ACH:

  • ACH transfers usually take two to three days to complete, not including business days and bank holidays. Your Nophin account offers ACH transfers between accounts you own and other accounts that request payment from you. Your tenants can also pay you via ACH using Nophin's rent collection.
  • An ACH debit happens when the originating financial institution transfers money to be "pushed" into the recipient account.
  • An ACH credit happens when the recipient requests money to be "pulled" from a different financial institution.
  • In the US, federal law requires any cash transfer of $10,000.00 or more must be reported to the IRS using Form 8300. This includes ACH transfers.
  • ACH transfers can be reversible if a participant bank provides sufficient documentation. This usually does not happen, however.

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