What is an ACH transfer? How US bank payments move
By SendPay Business · · 2 min read
An ACH transfer is a payment between US bank accounts sent over the Automated Clearing House network. It is how most US wages, benefits, bills and account-to-account transfers are paid.
Who runs it
The ACH network is governed by Nacha, and payments are processed by the Federal Reserve and The Clearing House. Banks send payments in batches, which is why ACH is cheap but not always instant.
How an ACH payment works
- The payer or payee's bank creates the payment with the other account's routing and account numbers.
- The bank sends it to an ACH operator in a batch.
- The operator sorts the batch and passes each payment to the receiving bank.
- The receiving bank credits the account, often the same day or the next business day.
ACH vs wire vs FedNow
ACH is low cost and good for regular payments such as payroll. Wire transfers are faster and final but usually cost more. FedNow and other instant payment services settle within seconds, at any time of day.
Where SendPay fits
In the US, SendPay platforms cover card payments only. Outside the US, SendPay platforms offer GBP, EUR and USD accounts, transfers, cards and payment links, powered by licensed partners.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.