REPAY ACH (Automated Clearing House) is a batch processing, store-and-forward system which provides for the interbank clearing of electronic payments for participating depository financial institutions.

Transactions received by the financial institution during the day are stored and processed later in a batch mode. Rather than sending each payment separately, ACH transactions are accumulated and sorted by destination for transmission during a predetermined period. This provides significant economies of scale. It also provides faster processing than paper checks, which must be physically handled. Instead of using paper to carry necessary transaction information, ACH transmissions are transmitted electronically between financial institutions through data transmission.

ACH payments include:

  • Direct Deposit of payroll, Social Security and other government benefits, and tax refunds
  • Direct Payments such as mortgages, loans, utility bills and insurance premiums
  • Business‐to‐business payments
  • e‐Commerce payments
  • Federal, state and local payments