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Automatic Clearing House (ACH) Payments

A 10 page paper discussing the advantages and disadvantages of ACH, and comparing it to credit cards as a payment method. The last link in the value chain, and the one that continues to drive the process of buying and selling, is that of payment. All other aspects of buying and selling have easily adapted to electronic means, but that of payment has been the most difficult to convert to an electronic basis. ACH was originated in the 1970s primarily for insurance companies to be able to automatically deduct premium payments from insureds’ checking accounts, and has grown from that beginning to include automatic payment of utility bills and mortgages. Later, the ability to also automatically deposit funds into bank accounts also was developed. Financial institutions are investigating possible methods for making it more useful in Internet-based transactions. Bibliography lists 10 sources.


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  • Title: "Automatic Clearing House (ACH) Payments"
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