Points ACH
Transfer Speed ACH transfers often take
two to three business days
to complete. Banks and
clearinghouses process
ACH payments in batches
—they’re all done together
instead of being handled
individually, first-come-
first-served. However, the
ACH system is moving
toward same-day transfers,
and some payments are
already eligible for same-
day treatment.
Certainty and Safety ACH transfers are also
quite safe, but ACH
transfers into your account
can be reversed. This is
true of mistakes that your
employer makes (if they
overpay by accident) as
well as fraudulent transfers
out of your account.
However, there are rules
about when and how banks
authorize reversals, so
most transfers are going to
stay unless there was
clearly fraud or a mistake.
Wire
Wire transfers move
funds from one bank to
another in one business
day, and the money can
even be made
available that same day.
Wire transfers are similar
to an electronic cashier’s
check:
 When receiving
funds, the bank
treats the payment
as cleared
money and allows
the recipient to
spend or withdraw
as soon as the
payment is credited
to the final account.
 When sending
money, the funds
must be available in
the sender’s
account before the
payment is issued.
The bank will
immediately
remove the money
from the sender’s
account as the
request is
processed.
 Cost to Send and ACH transfers are almost
Receive always free for consumers
—especially if you’re
receiving funds in your
account.
Wire transfers: There is
almost always a fee to
send a wire transfer. Banks
might charge between $10
to $35 to send a wire
within the United States,
and international transfers
cost more. Receiving a
wire transfer is often free,
but some banks and credit
unions charge small fees to
receive funds by wire. 

Automated Clearing House (ACH) is an electronic network for financial transactions in the

United States. ACH processes large volumes of credit and debit transactions in batches. ACH
credit transfers include direct deposit, payroll and vendor payments. ACH direct debit transfers
include consumer payments on insurance premiums, mortgage loans, and other kinds of bills.
Debit transfers also include new applications such as the point-of-
purchase (POP) check conversion pilot program sponsored by NACHA. Both the government
and the commercial sectors use ACH payments. Businesses increasingly use ACH online to
have customers pay, rather than via credit or debit cards. [citation needed]
ACH is a computer-based clearing and settlement facility established to process the exchange of
electronic transactions between participating depository institutions.

The Automated Clearing House Network

The ACH Network is at the center of commerce in the U.S., moving money and information from
one bank account to another through Direct Deposit and Direct Payment via ACH transactions,
including ACH credit and debit transactions; recurring and one-time payments; government,
consumer and business-to-business transactions; international payments; and payments plus
payment-related information. Each year it moves more than $41 trillion and 24 billion electronic
financial transactions. As such, the ACH Network is now one of the largest, safest and most
reliable payment systems in the world, creating value and enabling innovation for all participants. 

ACH Network: Quick Facts

 The ACH Network is a batch processing system in which financial institutions accumulate
ACH transactions throughout the day for later batch processing.
 Instead of using paper to carry necessary transaction information, such as with checks,
ACH Network transactions are transmitted electronically, allowing for faster processing
times and cost savings.
 The ACH Network processes two types of transactions: Direct Deposits via ACH and
Direct Payments via ACH.
 Direct Deposit via ACH is the deposit of funds for payroll, employee expense
reimbursement, government benefits, tax and other refunds, and annuities and interest
payments. It includes any ACH credit payment from a business or government to a
consumer.
 Direct Payment via ACH is the use of funds to make a payment. Individuals or
organizations can make a Direct Payment via ACH as either an ACH credit or ACH debit.
o A Direct Payment processed as an ACH credit pushes funds into an account. An
example of this is when a consumer initiates a payment through his/her bank or
credit union to pay a bill.
o A Direct Payment processed as an ACH debit pulls funds from an account.  An
example of this is when a consumer establishes a recurring monthly payment for
a mortgage or utility bill, and his/her account is debited automatically.  
 ACH credit and ACH debit transactions process quickly.  Settlement, or the transfer of
funds from one financial institution to another to complete the transaction, generally
happens next day.
 Specifically, the NACHA Operating Rules require that ACH credits settle in one to two
business days and ACH debits settle on the next business day. Recent enhancements to
the NACHA Operating Rules now enable same-day settlement of virtually all ACH
transactions.