Initially created to lower paper check processing the ACH network started in the 1970’s as well as was predominately utilized to collect insurance policy premiums as well as home loan settlements in an automatic fashion. Pay-roll direct down payment was and also is an additional strong chauffeur of ACH deal volume. Today the ACH network procedures billions of transactions yearly and streamlines settlement processing for 1000’s of businesses.

The ACH network contains more than 12,000 banks, 650 industry councils, and a network of regional ACH organizations, and also is controlled by NACHA– The Electronic Payments Association in Herndon, Virginia. The National Automated Clearing Up Home Association was developed in 1974 to work with efforts to establish a nationwide ACH network, inevitably doing well in 1978, when all ACH networks nationwide were digitally linked.

In 1980, the ACH Network was changed somewhat by the flow of the Monetary Control Act, which permitted private sector ACH Process to compete with the Federal Reserve Bank.