ACH Transfers: What They Are, How They Work and How Much They Cost

Most consumers use ACH to pay bills and send money person-to-person payments. Banks and third-party apps such as rely on ACH to move money between securities and exchange commission friends and family or, in some cases, pay bills. ACH has also been embedded in many high-profile fintech payment apps, such as Stripe.

• While typical ACH transfers take between 1 and 3 days to process, Novo Express ACH enables you to initiate same-day or next-day ACH transfers for a nominal fee.
• Conveniently create electronic transfers for vendor and supplier payments and payments to other payees in a timely and reliable manner using Regions ACH (Automated Clearing House) Origination.
• In terms of speed, both ACH money transfers and wire transfers are quick options for sending money electronically.
• The ACH system is also the underlying technology behind most peer-to-peer transfers made through services like Venmo, PayPal, Cash App, and Zelle.
• Delays on the delivery end could result in a missed payment.

Direct payments can be used by individuals, businesses, and other organizations to send money. For example, if you’re paying a bill online with your bank account, that’s an ACH direct payment. Social payment apps such as Venmo and Zelle also use the network when you send money to friends and family. You can also use Zelle, a payment app that works directly with hundreds of banks and credit unions.

ACH transfer vs. wire transfer

Chase serves millions of people with a broad range of products. Chase online lets you manage your Chase accounts, view statements, monitor activity, pay bills or transfer funds securely from one central place. For questions or concerns, please contact Chase customer service or let us know about Chase complaints and feedback. For transfers to/from a non-Chase account, it typically takes 2-3 business days to complete. An ACH transfer can take anywhere from a few hours to two business days, depending on the time of day it’s initiated and whether same-day processing has been requested.

The ACH system is also the underlying technology behind most peer-to-peer transfers made through services like Venmo, PayPal, Cash App, and Zelle. Other obstacles include overdraft fees for insufficient funds, restricted payment options to different countries, and limits on savings account transfers. Although ACH transfers are efficient, secure, and low cost, they’re not ideal for all transactions. Business owners may select other methods for time-sensitive or high-dollar payments.

ACH payments save time, money, and reduce stress.

Others may charge fees for more than six transfers or withdrawals per month. The base price for an ACH transaction is the network fee, which is fractions of a penny. However, most parties use processing partners who typically add a flat fee per transaction (anywhere from $0.20 to $1.50). While higher-value payments may also see a small percentage-based surcharge (0.5% to 1.5%), those fees usually max out at $5.

Whether your business serves wholesale or retail markets, your customers will likely demand that a wide variety of payment methods be accepted. One advantage of ACH transfers is they require authorization between your bank and the receiving bank. This can help reduce the chances of chargebacks arising from a customer disputing a transaction and demanding a refund.

ACH Transfer: What is it and How Long Does it Take?

A wire transfer represents the withdrawal of funds from, or a debit entry to, the originator’s account. These funds are then deposited in, or credited to, the receiver’s account. ACH transfers, on the other hand, may be either a debit or a credit. Regardless, there is always an originator and a receiver, and an ACH transaction may credit the receiver’s account similar to a wire transfer.

When you receive a wire transfer, the funds are accessible immediately. The Automated Clearing House (ACH) network is a system for moving money between accounts in the US. It’s a digital process that has largely replaced the paper check, to improve speed and efficiency and reduce the need for manual human input. See how to add accounts to your Chase Mobile app to make transfers or payments. If you suspect fraud, the Federal Trade Commission recommends contacting the company or bank you sent it through as soon as possible to request a reversal of the wire transfer.