What is a key characteristic of an Automated Clearing House (ACH)?

An Automated Clearing House (ACH) is characterized primarily by its ability to handle transactions in batches. This batch processing involves grouping numerous transactions together and submitting them for processing at once, which typically occurs at scheduled intervals throughout the day. This allows for efficient processing of large volumes of transactions, making it a cost-effective solution for recurring payments such as payroll, bill payments, and direct deposits.

In contrast to real-time processing—which is not a feature of ACH—batch processing enables the ACH network to handle a high volume of transactions efficiently, even if they don't settle instantaneously. This method of operation is integral to the functioning of ACH, distinguishing it from other payment methods that may process transactions individually or in real-time.

The other options do not accurately describe ACH's operational characteristics. For instance, while transactions can certainly involve significant amounts, ACH is not limited to "bulky" transactions alone. Similarly, ACH processes a variety of transaction types, including both credit and debit transactions, and is not restricted exclusively to debit card transactions.