IntroductionBusinesses, these days, do not want to get bogged down in a lot of red tape when processing transactions, especially when processing a myriad of financial transactions with their stakeholders. Businesses want to enjoy the benefits of hassle-free processing of financial transactions that result in significant savings, preferably through a fast and secure electronic money transfer system. DefinitionAutomated Clearing House (ACH) is a secure electronic funds transfer system that facilitates all financial transactions for private businesses, government agencies, and all financial institutions in the United States. It is the leading electronic funds transfer (EFT) network connecting all U.S. financial institutions. ACH financial services encompass electronic payment transmissions, including online payments, direct deposits, funds transfers and fundraising. Because it is an electronic system that paves the way for faster processing or turnaround time of financial transactions in a secure environment, it therefore generates significant savings for all sectors benefiting from its services .HistoryIn response to the rapid escalation of check volumes worldwide In the United States, a group of California bankers formed the Special Committee on Paperless Entry (SCOPE). With the aim of creating an automated payment system, SCOPE explored feasible frameworks such as its operational, technical and legal aspects. The success of this venture ultimately led to the formation of the first ACH association in 1972. In its quest to establish uniform operating rules for the exchange of automated clearing house payments among ACH associations, Electronic Payments As...... middle of paper ...... information required by the Bank Secrecy Act, which includes: name of sender, physical address, deposit account number, depository institution, payment amount, escrow name, address, account number and financial institution. , Rock. Andersen, Arthur. Fried, Frank, Harris, Shriver and Jacobson. MANAGEMENT OF RISKS CREATED BY INTERNET-INITIATED VALUE TRANSFERSNational Automated Clearing House Association. The Internet Council, 1997. Softcover. Hughes, Denis M. Federal Reserve. Automated Clearing House, Bank Holding Company, BeigeBook, Booksllc.Net, 2013.Miller, Frederic P., Vandome, Agnes F., Mcbrewster, John. Automated clearing house. VDM publishing house. Pin. April 2010Web links:http://www.ehow.com/list_7250847_rules-ach-origination.html#ixzz31fkkV2akhttps://www.nacha.org/ach-network