difference between z

Difference between ACH and Wire Transfer

Difference between ACH and Wire Transfer

When transferring money between bank accounts, there are two main options: ACH and wire transfer. Both transfers have their own unique benefits and drawbacks, so it’s important to understand the difference before choosing which option is best for you. Here we will break down the key differences between these two types of bank transfers.

What is ACH Transfer?

ACH Transfer is a method of electronic funds transfer (EFT) that allows businesses to send or receive payments through the ACH network. ACH Transfers are typically used for recurring payments, such as payroll or monthly invoices, but can also be used for one-time payments.

ACH Transfer is a safe and efficient way to move money and is often cheaper than other forms of EFT, such as wire transfer. To send an ACH transfer, you will need the recipient’s bank account number and routing number. Once the ACH Transfer is complete, the funds will be transferred immediately, providing quick and easy access to your money.

What is Wire Transfer?

A wire transfer is a type of electronic payment service that enables users to transfer funds from one bank account to another. This can be done either via a Wire Transfer Service provider such as Western Union or by using the direct banking system of the two banks involved in the transaction. In most cases, a wire transfer is initiated by the sender (the “from” party) and processed by their bank, before being routed through the interbank system to the recipient’s (the “to” party) bank.

The recipient then receives the money into their account, minus any applicable fees. Wire transfers are typically fast and secure, making them a popular choice for large or time-sensitive payments. However, they can also be relatively expensive, so it is important to compare prices before choosing this method of payment.

Difference between ACH and Wire Transfer

ACH and wire transfers are both electronic payments, but there are some key differences between the two. ACH transfers are processed by a network of banks and financial institutions, and they usually take a few days to clear. Wire transfers are processed by a specific bank or money transfer service, and they typically clear within a few hours.

ACH transfers are typically used for larger payments, such as mortgage payments or tuition bills, while wire transfers are more often used for smaller payments, such as utility bills. ACH transfers are also cheaper than wire transfers, making them the preferred option for many businesses and individuals. However, in some cases, a wire transfer may be necessary in order to ensure that the payment is received in a timely manner.


If you need to make a payment and want to ensure it arrives as quickly as possible, you may be wondering about the difference between ACH and wire transfer. Here’s a look at how each one works and when you might want to use them. ACH payments are processed through the Automated Clearing House network.

This system is used by businesses and financial institutions to move money electronically between accounts. Funds transferred this way usually take two days to clear, but some banks offer same-day processing for an additional fee. Wire transfers are handled through the SWIFT network, which is used by banks all over the world to send money internationally.

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on email