---
title: "ACH payment: definition | Rex glossary"
description: "An electronic bank transfer through the US Automated Clearing House network, one of the most common ways US businesses pay each other."
canonical: https://www.rex.inc/glossary/ach-payment
---

# ACH payment

An electronic bank transfer through the US Automated Clearing House network, one of the most common ways US businesses pay each other.

ACH payments are inexpensive and widely used for B2B payments. Remittance detail can travel with the payment in addenda records, using formats such as CCD+ or CTX, but it's often truncated or missing.

When the remittance arrives separately, by email or through a portal, someone has to connect the two before the cash can be applied.

## Related terms

- [Wire transfer A fast electronic transfer between banks, often used for large or international payments, that carries little remittance information.](https://www.rex.inc/glossary/wire-transfer)
- [Remittance advice The details a customer sends with or alongside a payment, saying which invoices it covers and explaining any deductions.](https://www.rex.inc/resources/glossary/what-is-remittance-advice)
- [Cash application Matching incoming payments to the open invoices they pay and posting them in the ERP, so receivables and cash stay accurate.](https://www.rex.inc/resources/cash-application/what-is-cash-application)

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