What system is commonly used for paperless funds transfers in the U.S.?

The Automated Clearing House (ACH) is the correct answer because it is a widely used network in the United States that facilitates paperless electronic fund transfers. The ACH system allows for batch processing of transactions, enabling different types of payments, including direct deposits, bill payments, and business-to-business transactions. It operates in a manner that is efficient and cost-effective, making it a preferred method for recurring payments and payroll processing.

In contrast, Electronic Funds Transfer (EFT) refers to a broader category of electronic transactions that includes various methods of transferring funds but does not specifically identify the ACH system. The Wire Transfer System is typically used for high-value, real-time transactions that require immediacy, while credit card processing systems primarily handle transactions related to credit and debit cards rather than direct fund transfers in the same manner as ACH. Therefore, the ACH stands out as the primary system designed specifically for paperless funds transfers.