How to Send an ACH Payment to Someone
Navigate the process of sending an ACH payment with confidence. Our guide simplifies electronic money transfers from setup to completion.
An Automated Clearing House (ACH) payment is an electronic transfer of funds between bank accounts within the United States. This network facilitates various financial transactions, commonly used for direct deposits, routine bill payments, and transfers between individuals. This guide explains how to send an ACH payment to another person.
What You Need Before Sending
Before initiating an ACH payment, gathering specific recipient information is necessary to ensure the funds reach the correct destination. The recipient’s full name, exactly as it appears on their bank account, is a primary detail. This helps prevent discrepancies that could delay or return the payment.
You will also need the recipient’s bank name, which identifies the financial institution holding their account. Along with the bank name, the recipient’s bank account number is essential for directing the funds to the specific account.
A nine-digit bank routing number is also required. This number identifies the recipient’s financial institution within the ACH network. Recipients can locate their routing number on the bottom of their paper checks or by logging into their online banking portal. Accuracy in these details is paramount, as incorrect information can lead to payment delays or rejections.
Once all necessary recipient banking details are collected, you will use your own bank’s online banking portal or mobile application to initiate the transfer. These platforms provide the interface through which you will input the gathered information and authorize the payment.
Steps to Send an ACH Payment
Log into your online banking account or mobile application. Locate the section for transfers, payments, or sending money. This option might be labeled as “External Transfers,” “ACH Payments,” or similar, depending on your bank’s interface.
The system will prompt you to enter the recipient’s details. This includes their full name, the name of their bank, their bank account number, and their bank routing number. Carefully input each piece of information into the designated fields, double-checking for any typographical errors.
After entering the recipient’s banking information, specify the exact amount of money you wish to send. You may also have the option to select a desired transfer date, allowing you to schedule the payment for immediate processing or a future date. Before finalizing the transaction, a review screen will display all the entered details. Meticulously review this summary to confirm the accuracy of the recipient’s information and the payment amount. After verifying everything, confirm the transfer, often requiring an additional security step like a password or a one-time code.
After Sending: Processing and Confirmation
Once an ACH payment is initiated, it enters a processing phase through the Automated Clearing House network. These transfers are processed in batches, meaning they are not instantaneous like wire transfers. Typical ACH processing times range from one to three business days, with weekends and federal holidays extending the timeline.
After the payment is submitted, you can confirm its status through your online banking transaction history or mobile app. Many banks also send email confirmations. It is advisable to monitor your account activity for the debit and to contact the recipient to confirm their receipt of the funds once the typical processing time has elapsed.
While many standard ACH transfers are free, some banks or third-party payment applications may charge a small fee. It is always prudent to review your bank’s fee schedule for any charges associated with sending ACH payments.