What is the difference between ACH and Wire Transfer?

ACH stands for Automated Clearing House Transfer, and Wire Transfer are the two most common ways of sending or transferring money. The ACH money allocation involves large volume payments like that of a company’s payroll and payments of bills and loans. The National Automated Clearing House Association governs it. ACH transactions are praised for being a very safe route for handling your money.

A wire transfer is a more personalized way of transferring money. It is usually made from one bank to the other. It might also be described as a bank transfer where no cash is involved, only electronic balances. ACH is considered as business to a business transaction, while wire transfer is more person to person.

ACH money transfer is more appropriate for companies and government agencies in which transactions are generally high in numbers, such as the payroll of employees. ACH is trusted and safe, while wire transfers are more susceptible to making mistakes, and the chance of being cheated is higher.

Our money is important to us because it is how we are able to live in our homes, drive our cars, and have food. Sometimes, we need to be able to transfer our money to another source in exchange for a service or a product. Two ways to do so is through ACH and wire transfers. ACH stands for the automated clearing house. It is done by using your routing and account number and entering it into a payment form. This service is almost always free, for it is done directly with banking information. Wire transfers have a charge and are unable to be reversed.