The term ACH (Automated Clearing House) refers to bank transfers that can either pull or push funds from one account to another electronically using only account details. The originator (the person starting the exchange) makes a debit or credit payment through their bank partner and a third-party sender to the recipient.

ACH debit transactions pull funds from the payer’s account to send to the originator, like when you pay a monthly bill. ACH credit transactions will push funds from the originator’s account to another, similar to when your employer delivers your direct deposit.