- ACH and wire transfers are the primary ways banks send money through various financial institutions.
- Banks usually offer free ACH transfers, and they may be ideal for payments that you can plan ahead.
- Bank transfers cost a fee but can be sent immediately.
If you need to send money to someone else’s bank account, your bank has two primary ways to move money across accounts – automated clearinghouse transfers and wire transfers.
To determine which transfer method to inquire about and see if there is a cost involved, we compared ACH transfers and wire transfers.
ACH vs. Bank Transfer: At a Glance
ACH transfers and electronic transfers are handled differently, and choosing the right transfer will likely depend on the purpose of the transfer.
- that ACH . transfer They are sent in batches through the Automated Clearinghouse network and usually take a few business days to process.
- a wire transfer They are sent immediately and may not be easy to cancel.
What is an ACH conversion?
Even if you are not familiar with the term ACH transfer, chances are that you have used this type of transfer method before.
Common examples of ACH transfers include direct deposit and online bill payments, says Tristan Thompson, director of payments strategy at Arvest Bank.
“Generally, any time you can plan to pay in advance is a great opportunity to use ACH, or in a situation where you’re going to get a recurring payment,” Thompson adds. “If you set up something like automatic payment, a lot of times what you do is just connect your bank account, and because that’s pre-scheduled, it will probably bypass the ACH bars, and it will be cheaper for the customer.”
ACH transfers sent through financial institutions generally do not incur any fees. If you need to cancel an ACH transfer, you may be able to cancel the transaction online or over the phone.
Example of ACH . conversion
If you are looking for a tool to help you pay your monthly bills, ACH Transfer could be perfect.
To schedule ACH transfer of your bill, you can set up online bill payment through online banks or
. All you have to do is log into your account, and look for a tab that says “Bill Pay”.
You can add a company or individual by entering the name of the payee. You may also need to know the address and bank account number of the person or company you’re sending money to.
Once you have entered and reviewed this information, funds can be withdrawn from your account routinely so that you never miss a payment by mistake. It is possible for you too Cancel automatic bill payment Easily.
What is a bank transfer?
There are two different types of wire transfers – domestic wire transfers and international wire transfers.
Domestic bank transfers can be sent to any bank account in the United States. Depending on your bank, you may have to pay anywhere from $0 to $15 per transaction.
International wire transfers allow you to send money to people in other countries. An international wire transfer costs a lot more than a local wire transfer – you may have to pay anywhere from $30 to $50 per transfer.
Bank wire transfers will be a good option if you need to send money right away. However, you have to keep in mind who you are sending the money to, because it may not be easy to get your money back.
“If you send a wire transfer, as soon as you send it, the money is gone. It’s instant and irrevocable,” says Thompson.
Tammy Robinson, senior manager of integrated account services at Arvest Bank, also points out that scammers often ask people to send wire transfers because they know the money is often difficult to cancel.
Example of a bank transfer
If you need to Send money to a family member internationally For an urgent issue, you can consider using an international bank transfer.
To initiate a wire transfer, you will usually have to contact your bank’s customer support or visit a branch. By having a banker assist you with the transaction, there is also an extra layer of security.
The following information may be readily available to make an international transfer:
- Money you send, plus an additional amount to cover wire transfer fees
- The name and home address of your recipient
- Banking information, such as the name of the financial institution, the International Bank Account Number (IBAN), or the SWIFT code
Since bank wire transfers do cost a fee, you may want to make a one-time transaction to avoid additional fees.