How to ACH Money to Someone

An Automated Clearing House (ACH) transfer is an electronic movement of money between banks or credit unions through the Automated Clearing House network. It is a primary method for electronic funds transfers in the United States, facilitating various financial transactions. Individuals commonly use ACH for person-to-person (P2P) payments, direct deposits of paychecks, and automatic bill payments.

This method is a secure and often cost-effective alternative to traditional checks or wire transfers. ACH credit transfers, where you “push” money, are used for sending funds to friends, family, or making online payments. Its reliability and broad adoption make it a common choice for moving money between different financial institutions.

Gathering Necessary Information

Before initiating an ACH transfer, collect specific details from the recipient to ensure funds reach the intended account. You will need the recipient’s full legal name as it appears on their bank account.

The transfer also requires the recipient’s bank name, their bank account number, and their bank’s routing number. The routing number is a nine-digit code identifying the recipient’s financial institution within the U.S. banking system. This number, along with the account number, directs the funds to the correct destination.

To obtain these details, ask the recipient for a voided check, which displays both their routing and account numbers. Alternatively, they can provide this information directly from their online banking portal or by contacting their bank. Also determine if the recipient’s account is a checking or savings account, as this detail is required for the transfer. As the sender, you will need access to your own online banking portal or a trusted payment application that supports ACH transfers.

Initiating Your ACH Transfer

Once recipient information is gathered, initiate the transfer through your financial institution. Log into your online banking portal or payment application. Most online banking platforms feature a dedicated section for transfers or sending money, often labeled “Pay & Transfer,” “External Transfers,” or “Send Money.”

Within this section, you will find an option to add a new recipient or select from a list of previously saved payees. When adding a new recipient, input their full legal name, bank name, account number, and routing number into the designated fields. Also specify the account type (checking or savings) as required by your bank.

After entering recipient banking information, specify the amount to send. Many platforms allow you to choose the transfer date, offering options for immediate transfer, scheduling for a future date, or setting up recurring payments. Before finalizing, a review screen will display all entered details for verification. Check all information for accuracy to prevent errors. Upon confirming, you will receive a confirmation message or transaction ID, indicating your transfer has been initiated.

Understanding ACH Transfer Timelines and Limits

ACH transfers, while efficient, operate on specific processing timelines rather than being instantaneous. Funds take one to three business days to process and become available. This timeframe excludes weekends and federal banking holidays, as the ACH network processes transactions in batches during business hours. Factors such as the bank’s daily cut-off times can also influence when a transfer begins processing, potentially adding a day if initiated after the cut-off.

The initiation date may not be the same as when funds are settled and accessible. Some financial institutions offer same-day ACH processing for an additional fee, but this is not universally available. Compared to wire transfers (faster but more expensive), ACH transfers are generally free or incur very low fees for personal use, making them a cost-effective option.

Financial institutions impose daily, weekly, or per-transaction limits on ACH transfers to manage risk. These limits can vary significantly between banks and account types, ranging from a few thousand dollars per day for personal accounts to potentially higher amounts. While the National Automated Clearing House Association (Nacha) sets a maximum same-day ACH transfer limit of $1 million, individual banks may implement much lower limits for their customers.

Managing and Troubleshooting ACH Transfers

After initiating an ACH transfer, you can monitor its status through your online banking history or payment application. This allows you to track whether the transaction is pending, processed, or if any issues have arisen. Once the expected processing timeline has passed, confirming receipt of the funds with the recipient is a good practice.

If a transfer does not arrive, first double-check the input details for accuracy, such as the recipient’s account and routing numbers. Reviewing your transaction history for any error messages can also provide immediate insight. Common reasons for transfer failures include incorrect account or routing numbers, insufficient funds in the sender’s account, or the recipient’s account being closed or nonexistent.

For unresolved issues, contact your bank’s customer service. Providing them with the transaction details and any confirmation numbers can help them investigate. Banks can trace funds using an ACH trace number, a 15-digit identifier. While ACH reversals are possible for errors like duplicate payments or incorrect amounts, they are time-sensitive and not always guaranteed. Reversal requests must be initiated quickly (within 24 hours of noticing the error) and are subject to Nacha Operating Rules.