What an ACH payment is and how it works
An ACH payment (Automated Clearing House) is an electronic transfer of money from one bank account to another. The money moves through a network operated by the Federal Reserve and a private clearinghouse, not through credit card networks or wire systems. ACH transfers are slower than wire transfers but cost little or nothing, and they work between any two U.S. banks that participate in the ACH network — which is nearly all of them.
When you send an ACH payment, you give your bank the recipient's name, account number, and routing number. Your bank bundles your transfer with thousands of others and sends them in batches, typically once or twice per day. The receiving bank then deposits the money into the recipient's account. The whole process usually takes one to three business days, depending on when you send it and how quickly each bank processes batches.
ACH transfers are used for payroll deposits, bill payments, moving money between your own accounts at different banks, and sending money to friends or family. They are also the method behind services like Venmo, PayPal, and most peer-to-peer payment apps — those services just wrap the ACH transfer in a user-friendly interface.
Key Takeaways
- ACH transfers move money between banks through a federal clearing network and typically take one to three business days to complete.
- You need the recipient's full name, account number, and routing number to send an ACH payment; the routing number identifies their bank.
- Most banks let you send ACH transfers through online banking, mobile apps, or by calling customer service, and many charge no fee.
- ACH transfers are safer than wire transfers because they can be reversed if something goes wrong, though the window to reverse is limited.
- If you send money to the wrong account, contact your bank immediately; they may be able to recall the transfer before it settles.
How to send an ACH payment through your bank
The most common way to send an ACH payment is through your bank's online banking portal or mobile app. Log in, look for a section labeled "Send Money," "Transfer Funds," "Pay Someone," or "External Transfers." You will be asked to enter the recipient's information: their full name, account number, and the routing number of their bank.
The routing number is a nine-digit code that identifies the bank or credit union where the recipient's account is held. You can find it on a check (it is the first set of numbers at the bottom left), on the bank's website, or by calling the bank directly. Some banks also let you search for a routing number by bank name on the Federal Reserve's website.
After you enter the recipient's details, you will choose the amount and the date you want the transfer to go out. Many banks let you schedule a transfer for a future date, which is useful if you want to time a payment with a paycheck or bill due date. Review all the information carefully — once an ACH transfer settles (usually within one to three business days), it is difficult to reverse.
If your bank does not offer ACH transfers online, call customer service and ask them to process the transfer over the phone. You will need to provide the same information: recipient name, account number, and routing number.
What information you need from the recipient
Before you can send an ACH payment, you need four pieces of information from the person or business receiving the money. First is their full legal name — the name on the account, not a nickname or shortened version. Second is their account number, which is usually 8 to 17 digits and appears on checks, statements, or in their online banking portal.
Third is the routing number of their bank. This is specific to the bank or credit union, not to the individual account. If the recipient banks at Chase, for example, all Chase accounts in a given region share the same routing number. Fourth is the account type — whether it is a checking or savings account. Most banks ask you to specify this to prevent sending money to the wrong type of account.
If you are missing any of this information, ask the recipient directly or contact their bank. Do not guess at account numbers or routing numbers; a mistake will send the money to the wrong account, and recovering it is time-consuming and not always possible.
ACH transfer fees and timing
Most banks do not charge a fee for outgoing ACH transfers, though some banks charge a small fee (usually $1 to $3) if you send a large number of transfers in a month or if you use a premium account tier. Check your bank's fee schedule or ask customer service whether ACH transfers are free for your account type.
The timing of an ACH transfer depends on when you send it and how your bank and the receiving bank process batches. If you send a transfer on a weekday before your bank's cutoff time (often 2 or 5 p.m.), it may arrive the next business day. If you send it after the cutoff or on a weekend, it will not leave your bank until the next business day, adding another day to the timeline. Holidays also delay transfers — a transfer sent on a Friday before a Monday holiday will not arrive until Wednesday or Thursday.
Most transfers take one to three business days total. Some banks advertise "next-day ACH," which means the transfer will arrive the next business day if sent before the cutoff. A few banks offer same-day ACH for transfers sent before a specific time, though this is less common and may have a higher fee or minimum amount.
Reversing or recalling an ACH transfer
Unlike a wire transfer, an ACH transfer can sometimes be reversed or recalled, but only within a narrow window. If you realize you made a mistake — sent money to the wrong account, sent the wrong amount, or sent a duplicate payment — contact your bank immediately. The sooner you call, the better your chances of stopping the transfer before it settles.
If the transfer has not yet left your bank (usually within a few hours of sending it), your bank may be able to cancel it outright. If it has already been sent but has not yet settled at the receiving bank (typically within one to three days), your bank can file a recall request. The receiving bank is not required to honor the recall, but many do if the request comes quickly.
Once the transfer has settled and the money is in the recipient's account, you cannot reverse it through the ACH system. Your only option is to contact the recipient and ask them to send the money back, or to dispute the transfer with your bank if it was unauthorized or fraudulent. This is why reviewing the recipient's information before you confirm a transfer is critical.
ACH transfers versus other ways to send money
ACH transfers are not the only way to move money between banks. Wire transfers are faster (often same-day or next-day) but cost $15 to $50 and cannot be reversed once sent. Peer-to-peer payment apps like Venmo, PayPal, and Cash App use ACH transfers behind the scenes but add a social layer and may charge a fee if you want instant transfers. Checks are free but slow, taking five to ten business days to clear.
For routine payments, bill payments, and transfers between your own accounts, ACH is usually the best choice because it is free and reliable. For urgent transfers or large amounts where speed matters more than cost, a wire transfer may be worth the fee. For sending money to friends or family, a peer-to-peer app is convenient but ultimately uses ACH unless you pay for instant transfer.
What to do if an ACH transfer goes wrong
If you sent an ACH transfer and it did not arrive after three business days, contact your bank first. Ask them to trace the transfer and confirm it was sent to the correct routing number and account. Sometimes transfers are delayed by the receiving bank, especially if there is a mismatch between the account number and the account holder's name.
If your bank confirms the transfer was sent but the receiving bank says they never got it, your bank can file a trace request. This investigation usually takes five to ten business days. If the money is found to be lost in transit, your bank will typically refund it to your account.
If you sent money to the wrong account and the receiving bank refuses to recall it, you have limited options. You can contact the recipient directly and ask them to return the money. You can also file a dispute with your bank, though they may not be able to recover the funds if the transfer was authorized by you (even if it was sent to the wrong place). This is why confirming the recipient's information before sending is so important.
Frequently Asked Questions
Can I send an ACH transfer on a weekend or holiday?
You can initiate the transfer on a weekend or holiday through your bank's online portal or app, but it will not actually be sent until the next business day. Your bank processes ACH transfers in batches during business hours, so weekend and holiday transfers are queued and sent the following business day.
What happens if I send an ACH transfer to an account with a different name?
Most banks do not verify that the account holder's name matches the name you enter. The transfer will likely go through, but if the receiving bank catches the mismatch, they may hold or reject it. If rejected, the money returns to your account within a few days. To be safe, use the exact name on the account.
Is it safe to give someone my account number and routing number for an ACH transfer?
Yes, your account number and routing number are safe to share for receiving ACH transfers. These numbers are printed on every check and are not sensitive like a PIN or password. However, only share them with people or businesses you trust, since someone with this information could theoretically send you unwanted transfers (though you can dispute them).
Can I set up a recurring ACH transfer?
Many banks allow you to schedule recurring ACH transfers for bills, rent, or regular payments to the same recipient. Set this up in your online banking portal under recurring or scheduled transfers. You can usually pause or cancel a recurring transfer at any time before it is sent.
Do I need to use a bank's bill pay service to send an ACH transfer?
No. Bill pay is one way to send ACH transfers, but you can also send them directly through the "Send Money" or "External Transfer" section of your online banking. Bill pay is useful if you want to mail a check as an alternative, but for ACH-only transfers, the direct transfer method is simpler.