What Does ACH Mean on a Bank Statement?
ACH stands for Automated Clearing House.
What ACH means
The ACH network is the US system banks use to move money electronically between accounts. It’s governed by the Nacha Operating Rules and run by two operators: the Federal Reserve (FedACH) and The Clearing House. Direct deposit, payroll, automatic bill payments, and many transfers between banks travel over ACH.
How ACH appears on a bank statement
Banks usually label these entries ACH DEBIT (money out) or ACH CREDIT (money in), followed by the company name. Many also add a three-letter code for the type of entry. Illustrative examples:
ACH DEBIT ACME UTILITIES PPD
ACH CREDIT ACME CORP PAYROLL PPDWording varies by bank. Codes you may see after the company name include PPD (consumer payments authorized in advance), WEB (payments authorized online), and CCD (business-to-business payments).
What to do if you don’t recognize an ACH charge
- Search the company name. It may be a parent company or payment processor rather than the brand you know.
- Check for subscriptions, annual renewals, or autopay you set up for a loan, insurance, or utility.
- Contact the company and ask what the charge is for.
- If it isn’t yours, tell your bank right away. For personal accounts, federal rules generally give you 60 days after the statement is sent to report an unauthorized electronic transfer and keep your full protections.