ACH and EFT are common banking terms.
Increasingly, transactions on your bank statement with have the letters "EFT" or "EFT/ACH" or "ACH" next to them. The terms, though not defined on the bank statement, can appear on most of your bank transactions.
EFT
Electronic Funds Transfer (EFT)
EFT is an acronym for Electronic Funds Transfer. It is an umbrella term that encompasses many kinds of money transfers between accounts in a single bank, between accounts in separate banks, and between individuals and companies (as in online bill pay).
ACH
Automated Clearing House (ACH)
ACH stands for Automated Clearing House. ACH is the national network that coordinates electronic transfers of money between an expanding number of entities. ACH began in the 1970s as a joint venture between several state banking agencies to establish uniform guidelines for electronic transfers. ACH has now evolved into an enormous entity that processes approximately 20 percent of all noncash payments in the United States.
Who Uses EFTs and ACH Payments?
Most people use EFTs.
Even if you don't see it on your bank statement, more than 40 percent of U.S. households use EFTs for recurring bill payments. Many more use EFTs or the ACH when they pay their bills online or use their credit or debit cards or get their paycheck deposited into their bank account via direct deposit. If you pay for something with anything other than cash or a check, then you're using EFTs.
