Automated clearinghouse (ACH) electronic funds transfer (EFT)

An automated clearinghouse (ACH) electronic funds transfer is an Electronic payment to a company’s account at a concentration bank. Use wire transfers as a means of collection from customer.

The use of ACH’s facilities concentration banking.

ACH’s are electronic networks operated by the Federal Reserve (except for the New York regional ACH association) that guarantee 1-day availability float.

Checks are not involved in an EFT an EFT is not a check-like instrument but actual transfer of funds electronically.

An ACH transfer involves the actual transfer of funds electronically; it is not just a computer-generated document (it is not Computer-generated deposit ticket verifying deposit of funds).