An automated clearing house is an electronic funds transfer system which allows for inter-bank clearing of electronic payments, such as credit card transactions.

ACH stands for automatic clearing house but it is an electronic funds transfer from one bank to another

i asked what is clearing house and how does it work.

ACH is a form of payment. It stands for automated clearing house. It is when you give permission to a company to pull funds directly from your account.

The process of clearing the cheque involves transfer of funds between banks using centralized check clearing houses.