What does ACH stand for in payment processing?

ACH stands for Automated Clearing House, which is a network that facilitates electronic payments and money transfers between banks and financial institutions. It is integral to various types of transactions, including direct deposit of payroll, bill payments, and other electronic funds transfers.

The term "Automated Clearing House" accurately describes the system's function: it automates the clearing and settlement of payment transactions, allowing for the secure and efficient movement of funds. The ACH network processes large volumes of credit and debit transactions on a recurring basis, making it a foundational element in the landscape of electronic payment processing.

The other options do not reflect the correct terminology or function associated with ACH. Automated Credit Hub, Account Collection Handle, and Automated Consumer Handling do not represent established financial terms or concepts related to the system for processing electronic payments. Therefore, the identification of ACH as the Automated Clearing House is critical for understanding payment processing in today's financial environment.