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Difference between ACH and EFT

Difference between ACH and EFT

When it comes to transferring money electronically, there are a few different options available. Two of the most common are ACH and EFT. But what’s the difference between them? Here’s a breakdown of how each one works.

What is ACH?

ACH payments are electronic payments that are processed through the ACH network. ACH stands for Automated Clearing House and is a network that banks and financial institutions use to process electronic transactions. ACH payments can be used for a variety of purposes, including direct deposit of payroll, government benefits, and tax refunds.

ACH payments are typically cheaper and faster than traditional paper checks and can be processed automatically without the need for manual intervention. In order to process ACH payments, businesses and individuals must have a designated ACH processor. ACH processors typically charge a small fee for each transaction, but this fee is often offset by the savings in time and money that ACH payments provide.

What is EFT?

EFT payment is an electronic funds transfer from one bank account to another. EFT payments are used for a variety of purposes, including paying bills, transferring money between accounts, and making purchases. EFT payments are typically made through a computer or mobile device, and the funds are transferred immediately. EFT payments are safe and secure, and they can be made without incurring any fees. EFT payments are an easy and convenient way to manage your finances, and they can help you save time and money.

Difference between ACH and EFT

ACH and EFT are two different terms that are often used interchangeably, but there are some subtle differences between the two. ACH stands for Automated Clearing House, which is a network that processes electronic financial transactions. EFT, on the other hand, stands for Electronic Funds Transfer, which is a type of ACH transaction. In general, ACH transactions are processed in batches, while EFT transactions are processed individually. ACH transactions usually take longer to process than EFT transactions, but they usually have lower fees. As a result, ACH is typically used for larger transactions, while EFT is typically used for smaller transactions.


There are a few key differences between ACH and EFT. First, ACH payments take one to two business days to clear, while EFT payments clear immediately. Second, businesses can only receive ACH payments if they have a bank account in the United States, while any business can receive an EFT payment. Finally, there is a limit of $25,000 per transaction for ACH payments, while there is no limit for EFTs. If you’re looking to make or receive payments quickly and without limits, then EFT is the better option.

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