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Definition
The ACH Network is the electronic payment system that facilitates Automated Clearing House transactions between financial institutions. It processes batches of credit and debit transfers for payments, deposits, and fund movements.

Why it matters
The ACH Network enables efficient, large scale electronic payments across banks and credit unions. It supports critical financial activities such as payroll, recurring billing, direct deposit, and account transfers.

Example use case
A utility company uses the ACH Network to collect monthly payments directly from customer bank accounts.