ACH

The Automated Clearing House is an electronic network for financial transactions in the United States, processing direct deposits, payroll payments, and electronic funds transfers. ACH is the standard method for government contract payments, enabling efficient electronic transfer of funds from Treasury to contractor bank accounts.

Contractors must provide ACH banking information during SAM.gov registration to receive contract payments. ACH payments replace paper checks for most federal transactions, reducing processing time and costs. Understanding ACH payment cycles helps contractors forecast cash flow and reconcile payments with invoiced amounts.