// GLOSSARY -- PAYMENTS & FINTECH
What is ACH Payment?
ACH (Automated Clearing House) is the US electronic payment system for bank-to-bank transfers — processing payroll, direct deposits, and bill payments with 1-3 day settlement at low cost.
WHY IT MATTERS
ACH processes billions of transactions annually — payroll, Social Security payments, bill payments, and P2P transfers (Venmo, Zelle use ACH rails). It's cheap (cents per transaction) but slow (1-3 business days standard, same-day ACH available).
Same-day ACH improved speed but still doesn't match crypto's near-instant settlement. And ACH is US-only — international transfers require SWIFT or other networks.
Crypto on-ramps commonly accept ACH for fiat deposits — it's the cheapest way to fund a crypto account, though the 1-3 day hold period creates friction.
FREQUENTLY ASKED QUESTIONS
ACH vs wire?
ACH: cheap (cents), slow (1-3 days), batch-processed. Wire: expensive ($15-50), fast (same-day), individually settled. ACH for routine payments, wires for urgent large transfers.
Is same-day ACH instant?
No — same-day ACH processes in batches throughout the day, settling by end of business. It's faster than standard ACH but not real-time like crypto or FedNow.
What is FedNow?
The Federal Reserve's real-time payment system, launched 2023. Enables instant bank transfers 24/7. Competes with crypto for fast domestic transfers but is US-only.