How to Send an ACH Payment to Someone
Understand how to send an ACH payment. This guide provides clear steps for initiating and managing electronic bank transfers securely.
Automated Clearing House (ACH) payments are electronic money transfers processed through a vast financial network. These payments are a common method for moving funds between bank accounts, serving various purposes from direct deposit of paychecks to recurring bill payments and person-to-person money transfers. Understanding how to initiate an ACH payment can simplify managing your finances and sending funds securely to others.
Information for Sending ACH Payments
Before you can send an ACH payment, you need to gather specific details from the recipient. This information ensures the funds are directed to the correct bank and account. Without accurate details, the payment could be delayed or returned.
You will need the recipient’s full legal name, exactly as it appears on their bank account. Additionally, you must obtain the name of their bank and its routing number. A bank routing number is a nine-digit code that identifies the financial institution.
The recipient’s bank account number is also required, which uniquely identifies their specific account at that bank. Finally, you need to know the type of account the funds are being sent to, whether it is a checking or savings account. This distinction is important for proper processing within the ACH network. Recipients can typically find their routing and account numbers on a personal check, a bank statement, or by logging into their online banking portal.
Steps to Send an ACH Payment
Once you have gathered all the necessary recipient information, sending an ACH payment involves using your bank’s online platform or mobile application.
Begin by logging into your personal bank account through their website or mobile app. Navigate to the section for transfers or sending money, which may be labeled as “External Transfers,” “ACH Payments,” or “Add a Recipient.” Here, you will find an option to add a new external account or recipient for transfers.
Carefully input the recipient’s full name, their bank’s name, the bank’s routing number, and their specific account number. Be sure to select the correct account type, indicating whether it is a checking or savings account. Before finalizing the transaction, a confirmation screen will appear, allowing you to review all the entered information. It is important to double-check every detail to prevent errors, as incorrect information can cause significant delays or misdirection of funds.
After Sending Your ACH Payment
After you have successfully initiated an ACH payment, your bank will provide a confirmation number or send an email confirming the transfer. This confirmation serves as proof of submission; keep it for your records.
ACH payments are processed in batches. It takes one to three business days for an ACH payment to fully process and for the funds to appear in the recipient’s account. Weekends and federal holidays can extend this timeframe, as the ACH network only operates on business days.
You can track the status of your sent payment through your online banking portal, which may show whether the payment is pending, processed, or completed. Once the expected processing time has passed, it is a good practice to confirm with the recipient that they have received the funds. If a payment seems delayed beyond the timeframe or if there’s an issue, contacting your bank’s customer service with your confirmation number is the appropriate next step.