Automated Clearing House (ACH) transfer: moving money between U.S. bank accounts
-
Key takeaways
An ACH transfer is an electronic payment that moves money between U.S. bank accounts through the Automated Clearing House network.
ACH transfers are processed in batches, so they typically settle within one to a few business days rather than immediately.
Many senders use an ACH transfer, sometimes called a bank transfer, to fund an international money transfer directly from a checking account.
ACH is a domestic U.S. system, so it doesn’t move money directly to a bank account outside the United States on its own.
Knowing an account number and routing number in advance helps an ACH-funded transfer go through without delay.
An ACH transfer is an electronic payment that moves money directly between bank accounts in the United States, without paper checks or cash changing hands. Setting up direct deposit for a paycheck, paying a bill online, or linking a bank account to fund a transfer all typically run through the ACH network without much thought given to the name behind it. Here’s why it matters when that account is also the one used to send money internationally, and what to expect in terms of timing and setup.
What is an ACH transfer?
An ACH transfer is an electronic payment that moves money between bank accounts in the United States through the Automated Clearing House network, a system that banks and credit unions use to process payments in batches rather than one at a time. ACH transfers are commonly used for direct deposit, bill payments, and moving money between accounts, and they typically settle within one to a few business days rather than instantly.
Why ACH transfers matter for sending and receiving money
For most people, an ACH transfer isn’t something set up manually. It happens in the background whenever a paycheck lands in a checking account, a utility bill is paid automatically, or money moves from one account to another, making it one of the most common ways money enters and leaves a U.S. bank account.
The ACH network(opens in new window) matters even more once international transfers enter the picture. Many senders fund a transfer to family abroad by linking a U.S. bank account, and that funding step often runs through the ACH system. Understanding how it’s timed helps explain why a transfer funded by a bank account can take a bit longer to start moving than one funded by debit card.
A few practical points about how ACH transfers behave:
Batch processing. Instead of moving instantly, ACH payments are grouped together and processed at scheduled times during the business day.
Cutoff times. Submitting a payment after a bank’s daily cutoff time can push processing to the next business day.
Weekends and holidays. ACH transfers don’t process on weekends or bank holidays, which can add to the total time before funds arrive.
Two directions. ACH covers both credits (money coming in, like a paycheck) and debits (money going out, like an automatic bill payment).
Common mistakes with ACH transfers
Mixing up accounts and routing numbers. Entering these in the wrong fields, or transposing a digit, is a frequent reason an ACH payment is delayed or rejected, though outcomes may vary by institution.
Assuming ACH is instant. Because ACH transfers process in batches, expecting same-day movement can lead to missed bill due dates or delayed transfer funding.
Ignoring the cutoff time. Submitting a payment in the evening or on a weekend often means it won’t begin processing until the next business day.
ACH transfer and international money transfers
ACH is built for domestic movement. It typically moves money between bank accounts within the United States, so it doesn’t, on its own, deliver funds directly to a bank account outside the United States.
Where ACH plays a role in international transfers is on the funding side. When setting up a transfer with Remitly(opens in new window) and choosing to pay from a bank account rather than a debit or credit card, that payment is often processed through the ACH network. Because ACH runs in batches, a bank-account-funded transfer may take a little longer to begin than one funded by card, since Remitly first needs the ACH payment to clear before sending the money onward.
This is worth knowing for anyone managing a regular remittance schedule. For someone sending money to support family in one of the 170+ countries worldwide Remitly serves, and timing matters, for example around a rent payment or a school fee deadline, it can help to fund the transfer a day or two ahead of when the money needs to arrive, rather than relying on a same-day bank transfer.
On the receiving side, ACH itself doesn’t apply, since the recipient’s bank is outside the U.S. ACH network. Instead, the money is delivered using whichever delivery method(opens in new window) was selected, such as bank deposit, cash pickup, or a mobile wallet, depending on what’s available in the recipient’s country.
Common questions about ACH transfers
-
How long does an ACH transfer take?
ACH timing varies, but in many cases a transfer settles within one to three business days. Some transfers process faster depending on the bank, the type of payment, and whether it was submitted before the daily cutoff time. Weekends and bank holidays can also add time, since the ACH network doesn’t process payments on those days.
-
Where do I find my account and routing numbers for an ACH transfer?
Both numbers are typically available in a banking app under account details, on a recent bank statement, or printed at the bottom of a paper check, with the routing number appearing first and the account number second. For anyone unsure which numbers to use, particularly if a bank uses different routing numbers for ACH versus wire transfers(opens in new window), contacting the bank directly is a dependable way to confirm them.
-
Is an ACH transfer the same as a wire transfer?
No. Both move money electronically between banks, but they work differently. ACH transfers process in batches and typically take one to a few business days, while wire transfers are processed individually and often arrive faster, usually for a higher fee. ACH is generally used for routine payments like payroll and bill pay, while wire transfers are more common for larger, time-sensitive payments.
In Summary
An ACH transfer is the electronic system quietly moving money behind many everyday U.S. banking tasks, from direct deposit to bill pay to funding a transfer abroad. It’s reliable and widely used, but it isn’t instant, so understanding its batch-based timing helps in planning around it. For anyone funding an international transfer from a bank account, building in a little extra time for the ACH step to clear can help ensure the money arrives when it’s needed.
This publication is provided for general information purposes only and is not intended to cover all aspects of the topics discussed herein. This publication is not a substitute for seeking advice from an applicable specialist or professional. The content in this publication does not constitute legal, tax, or other professional advice from Remitly or any of its affiliates and should not be relied upon as such. While we strive to keep our posts up to date and accurate, we cannot represent, warrant, or otherwise guarantee that the content is accurate, complete, or up to date.