EFT vs ACH: What the Difference Means For a Business Payer

A new supplier sends their first invoice, and the payment line reads, “Pay by EFT.” You open your bank’s portal and see “ACH transfer” instead. Are they the same thing? Will your money land where it should?

If you’ve paused at that screen, you’re in good company. The two terms get swapped constantly, but they aren’t identical. This guide explains the difference between EFT and ACH, how they’re related, where each term applies around the world, and what that means when you’re paying vendors, contractors, and suppliers at home or abroad.

The short answer

Electronic funds transfer (EFT) is the umbrella term for any money moved electronically between accounts. 

Automated Clearing House (ACH) is one specific U.S. network that carries a large share of those transfers. So every ACH payment is an EFT, but not every EFT is an ACH payment.

Think of EFT as “delivery” and ACH as one particular courier. The courier has its own routes, schedule, and rules, and it only covers certain addresses.

What is an EFT?

An electronic funds transfer (EFT) is any payment that moves money from one account to another without paper checks or cash. That includes ACH payments, wire transfers, card payments, and real-time bank payments.

What “EFT” means in practice depends on your location:

• In the U.S., EFT is a catch-all label. If a vendor asks for “EFT,” they usually mean ACH, but it’s worth confirming.
• In Canada, EFT is usually a specific term that refers to a direct deposit (push) or pre-authorized debit (pull) cleared through Payments Canada’s Automated Clearing Settlement System. To pay this way, you need the recipient’s institution number (3 digits), transit number (5 digits), and account number.
• Elsewhere, countries run their own domestic bank-to-bank systems, such as Bacs and Faster Payments in the U.K. and SEPA transfers in the eurozone.

Important note: A reference to “EFT” on an invoice tells you that the payment should be electronic. It doesn’t tell you which network, currency, or bank details to use.

What is an ACH transfer?

ACH is the U.S. network banks use to move money in batches. It’s governed by Nacha, the organization that writes the network’s rules, and it carries everyday business payments like payroll, vendor payments, and bill pay. (For a deeper dive, see ACH transfers explained.)

ACH works in two directions:

• ACH credit (push): you send money to someone, like paying a supplier.
• ACH debit (pull): someone collects money from your account with your authorization, like a recurring software bill.

To send an ACH payment, you need the recipient’s 9-digit routing number and their account number. Our guide to routing numbers vs account numbers shows where to find each one.

Timing is predictable. Nacha estimates about 80% of ACH volume settles in one banking day or less. Same Day ACH settles payments submitted within three daily processing windows, up to 1 million USD per payment. That limit will rise to 10 million USD on September 17, 2027.

The catch for international payers: ACH is built for USD payments between U.S. bank accounts. Payments that cross the border must use a special international format and pass through a gateway that connects to the other country’s payment system. That extra step brings real drawbacks:

• Limited reach. Your bank can only send international ACH to countries its gateway covers, and not every bank offers it. The Federal Reserve’s own cross-border ACH service now reaches only Mexico and Panama, and it’s set to close by the end of 2026.
• Slower delivery. Each payment needs extra sender and recipient details, is screened against sanctions lists, and is handed off to another country’s system. Expect it to take longer than a domestic ACH.
• Added cost. Your bank and its gateway set the fees and the exchange rate, so a payment that looks inexpensive at home can cost more by the time it arrives.
• Harder fixes. If something goes wrong, reversals are handled on a best-effort basis, and the receiving country may not support them at all.

EFT vs ACH at a glance

Which one do you need?

Paying a U.S. vendor in USD? An ACH credit is typically the right choice. It usually costs less than a wire, but our ACH vs wire transfer guide covers when paying more for a wire makes sense.

A Canadian supplier asked for EFT? They almost certainly mean a Canadian direct deposit in Canadian dollars. A standard U.S. ACH payment can’t deliver that from your end. You’ll need an international payment method that converts your dollars and pays out to their Canadian account.

Paying someone in another country? Ask how they want to be paid and in which currency, then collect the right details, like a SWIFT code or an IBAN. Our step-by-step guide to sending your first international business payment walks you through it.

Collecting money from customers? ACH debits in the U.S. and pre-authorized debits in Canada require the payer’s authorization before you pull funds.

Mistakes to avoid

• Assuming what “EFT” means on an invoice. Ask the recipient which network and currency they’re expecting, then get the right account details.
• Mixing up bank number formats. A Canadian institution and transit number won’t work in a U.S. routing number field and vice versa.
• Missing cutoffs and holidays. ACH runs on banking days, so a Friday evening payment won’t move until the next business day. Learn more about why overseas payments get delayed.
• Ignoring the currency. Paying in your currency instead of theirs can leave your supplier short after their bank charges a conversion fee.
• Accepting new bank details via email alone. Confirm any change through a contact you already trust. See how to spot supplier scams.

How Remitly Business helps

When you need to make payments beyond a domestic ACH or EFT, Remitly Business keeps the process close to how you’re already working. Fund payments from your existing bank account, debit card, or credit card, and pay contractors, freelancers, and suppliers in 175+ countries across 100+ currencies.

You see the exchange rate and our fees up front, before you send. 

Don’t have a recipient’s bank details? Send by Link lets them enter their own payout details. 

Paying several suppliers at once? Bulk payments let you handle up to 20 payments in one workflow, and receipts show your business name for cleaner records.

So whether the invoice asks for a payment via EFT or ACH, you’ll know exactly how your money gets there.

Explore Remitly Business

Common questions

Is ACH the same as EFT? ACH is a type of EFT. EFT covers any electronic transfer between accounts, while ACH is one specific U.S. network.

Is a wire transfer an EFT? Yes. Wires are electronic, so they fall under the EFT umbrella, but they run on different networks from ACH.

What does EFT mean in Canada? It usually means a direct deposit or pre-authorized debit between Canadian bank accounts, using institution, transit, and account numbers.

Can I send an ACH payment internationally? Sometimes, but it’s limited. Cross-border ACH needs a special format and a gateway, reaches only the countries your bank’s gateway covers, and typically takes longer and costs more than a domestic ACH. That’s why many businesses use an international payment provider instead.

Sources

• Nacha: 80% of ACH settles in one banking day or less
• Nacha: Same Day ACH limit rising to $10 million (approved April 27, 2026; current $1 million limit since March 18, 2022)
• Nacha: International ACH Transactions FAQs (gateway requirement for cross-border ACH)
• Payments Canada: AFT direct deposits and pre-authorized debits cleared by ACSS

• Federal Reserve Financial Services: FedGlobal ACH Payments (Mexico and Panama only; discontinuation by year-end 2026 announced Nov 25, 2025)
• Nacha: IAT executive summary (sanctions screening and extra party details on cross-border ACH)