How to Make an ACH Transfer and the Information You Need

An Automated Clearing House (ACH) transfer is an electronic movement of money between U.S. bank accounts. This system facilitates financial transactions for individuals and businesses. Common uses include direct deposits for paychecks, online bill payments, and sending money between individuals or to vendors.
ACH payments offer several advantages over traditional methods like paper checks. They are more secure, eliminating the risk of checks being lost or stolen. These transfers are also cost-effective and convenient, providing a reliable way to manage funds electronically.

Gathering Necessary Information

Before initiating an ACH transfer, gather all required details accurately to ensure a smooth transaction. Mistakes can lead to delays or misdirected funds. The information needed pertains to both the recipient and the specifics of the transfer itself.
For the recipient, you need their full legal name or exact business name. This ensures funds are directed to the correct party. Accurate spelling and formatting prevent transfer failures.
Recipient bank information is essential for a successful transfer, including the bank’s name, account number, and routing number. The routing number, also known as an ABA (American Bankers Association) routing transit number, is a nine-digit code that identifies the financial institution where the account is held.
Routing numbers are typically found on a check’s bottom left corner, through online banking, or on bank statements. Confirm the recipient’s account type (checking or savings), as this detail is often required.
Beyond recipient identity and bank details, specific transfer information is necessary: the exact amount and the effective date. Including a clear purpose or memo for the transfer, such as “rent” or “invoice payment,” can aid both parties in record-keeping. Finally, you will need your own bank account details, including your account number and routing number, as funds originate from your account.

Steps to Initiate an ACH Transfer

Once all necessary information is gathered, you can initiate the ACH transfer. Most individuals utilize their bank’s online banking portal or mobile banking application to send funds. These digital platforms offer a streamlined process for managing external transfers.
Log into your online banking account or mobile app. Navigate to the “Transfers” or “Payments” section, which often contains options for external transfers or “ACH Transfer.” Wording may vary between financial institutions. You will then typically be prompted to add a new recipient or payee if you haven’t sent money to them before.
Input all the recipient details you previously collected, including their full name or business name, bank name, routing number, and account number. Carefully select the correct account type (checking or savings), as choosing the wrong type can lead to a failed transfer. After entering the recipient’s banking information, specify the exact amount you wish to send.
Select the effective date for the transfer, the date you want your bank to initiate payment. Some systems allow immediate processing, while others let you schedule future payments. Before finalizing, a review screen will display all entered details. Verify every piece of information to prevent errors, delays, or misdirection of funds.
After reviewing and confirming the details, you will submit the transfer. Some banks may require an additional layer of security, such as a one-time passcode sent to your phone, before the transaction is fully authorized. While online banking and mobile apps are common, third-party payment services (e.g., bill pay platforms, peer-to-peer apps) also facilitate ACH transfers. The core information required remains consistent across these services, though the user interface will differ. For those less comfortable with digital platforms, initiating an ACH transfer through a bank branch or by phone remains an option.

Monitoring and Confirmation

After initiating an ACH transfer, confirm its submission and monitor its progress. Most banks provide an immediate confirmation screen indicating successful submission. You may also receive an email notification, serving as an additional record. Your online banking transaction history will typically show the transfer in a “pending” status shortly after submission.
ACH transfers are processed in batches, meaning they are not instantaneous. The Automated Clearing House network processes these transactions at set intervals throughout the business day. Standard ACH transfers take one to three business days to complete. Processing time is influenced by the time of day initiated (due to daily cut-off times) and whether it falls on a weekend or holiday, as ACH processing only occurs on business days. Some financial institutions offer a same-day ACH option for an additional fee, allowing for quicker processing, often within a few hours.
You can monitor the status of your transfer by regularly checking your online banking portal or mobile app. The transaction status will typically change from “pending” to “completed” once the funds have successfully reached the recipient’s account. In some cases, if there is an issue, the status might show “returned.” Once the expected processing time has passed, communicate with the recipient to confirm fund receipt.
If a transfer does not go through as expected or if you notice an error, checking your transaction history for a “returned” status can provide initial insight. If the issue is not clear, contacting your bank’s customer service department for assistance is the next step. They can investigate the transaction using its unique trace ID, a 15-digit number that acts as a unique identifier for each transfer. Reversing a processed ACH transfer is generally difficult and only occurs under specific, limited circumstances, such as duplicate transfers, incorrect amounts, or unauthorized transactions.