How to Send an ACH Transfer: Step-by-Step

An Automated Clearing House (ACH) transfer facilitates electronic money movement between bank accounts within the United States. This system offers a common method for electronic payments, serving as a digital alternative to paper checks. ACH transfers are widely used for financial transactions, including direct deposits for paychecks and routine bill payments.

Understanding ACH Transfers and Required Information

An ACH transfer moves money electronically between bank or credit union accounts through the Automated Clearing House network. This differs from a wire transfer, a direct, real-time transfer between two financial institutions. ACH payments are more cost-effective and secure due to their batch processing. Wire transfers, while faster, typically incur higher fees and are difficult to reverse. ACH transfers are suitable for domestic transactions, while wire transfers are often used for international payments or large, time-sensitive transfers.

To send an ACH transfer, you must gather specific information from your recipient. This includes their full name, bank name, the bank’s nine-digit routing number, and the recipient’s account number. The routing number identifies the financial institution, while the account number points to the individual account. It is also important to know the account type, such as checking or savings, and if the payment is for an individual or a business.

There are two types of ACH transfers from a sender’s perspective: ACH credit and ACH debit. An ACH credit transfer is initiated by the sender to move funds into another account. Examples include direct deposits for payroll or sending money to a friend. Conversely, an ACH debit transfer involves authorizing a recipient to withdraw money directly from your account. When sending money, you will typically be initiating an ACH credit.

Initiating an ACH Transfer

Once you have gathered the necessary recipient information, you can initiate an ACH transfer through various channels offered by your bank. Common methods include online banking portals, mobile banking applications, or in-person at a bank branch.

When using an online banking portal, log into your account and navigate to a section like “Transfers,” “Payments,” or “Bill Pay.” Look for an option to send an external transfer or make an ACH payment. You will then be prompted to enter the recipient’s full name, their bank’s name, the routing number, and their account number. After inputting these details, specify the amount and select the desired transfer date. Before finalizing, carefully review all entered information for accuracy and confirm the payment.

Mobile banking apps offer a similar process for initiating ACH transfers. After logging into your bank’s mobile app, locate the transfer or payment functionality, which may be labeled as “Pay bills & transfer” or “Send an ACH payment.” The app will guide you to input the recipient’s banking details, the amount, and the date. Always ensure you are using a secure and updated version of your bank’s official mobile application.

For those who prefer in-person transactions, you can visit a bank branch to initiate an ACH transfer. A bank teller will assist you, which may involve filling out a physical transfer request form. You will need to provide the same recipient details—full name, bank name, routing number, and account number—along with your identification. The teller will then process the request, and you may receive a confirmation receipt.

Processing Times, Limits, and Tracking

After initiating an ACH transfer, understand the processing timeline, as these transfers are not instantaneous. Standard ACH transfers typically take one to three business days to complete. This is because ACH payments are processed in batches throughout the day, rather than individually in real-time. The exact timing depends on when you submit the transfer and your bank’s specific cut-off times. If a transfer is initiated after a bank’s daily cut-off time, it will not begin processing until the next business day. For example, a transfer submitted late on a Friday might not settle until the following Tuesday or Wednesday.

Many financial institutions offer a “Same-Day ACH” option for an additional fee, allowing funds to be processed and settled within the same business day if submitted before specific cut-off times, often in the early to mid-afternoon Eastern Time. Even with same-day processing, the recipient’s bank may hold the funds for a short period before making them available. ACH payments are not processed on weekends or federal holidays, which can extend the overall transfer time.

Banks and financial institutions impose daily or transactional limits on ACH transfers for security and risk management. These limits vary significantly depending on the bank and account type. For personal accounts, daily limits can range from a few thousand dollars, such as $1,000 to $5,000, up to $25,000 or more. While NACHA has increased the maximum limit for eligible same-day ACH transactions to $1 million, individual bank limits for customers may be lower. Check with your specific bank for their applicable transfer limits.

You can track the status of your initiated ACH transfers through your online banking portal or mobile app, usually within the transaction history section. Most banks provide a confirmation number or an ACH trace number, a 15-digit identifier for the transaction. If you need to inquire about a transfer’s status or if it has not arrived within the expected timeframe, contact your bank’s customer service. Providing them with the transaction details, including the amount, date, and trace number, will help them locate and provide updates.

Common Scenarios and Considerations for Senders

When sending an ACH transfer, verifying recipient information is important to prevent errors and ensure funds reach the intended party. Before confirming any transfer, double-check the recipient’s full name, bank name, routing number, and account number. A small mistake can lead to delays or misdirected funds that are difficult to recover. For new recipients or significant amounts, some individuals send a small test transfer first to confirm details are correct before sending the full amount.

If an error is discovered after initiating an ACH transfer, contact your bank immediately. There is a limited window to correct or cancel a transfer, typically before it has been fully processed by the ACH network. While banks can sometimes recall or modify a transaction, especially if caught before batch processing, successful cancellation is not guaranteed once funds have been processed or moved to the recipient’s bank. Prompt action increases the chances of resolving the issue.

Security is important when sending money electronically. Always use secure websites and mobile applications provided by your bank. Look for “https://” in the website address and a padlock icon, indicating a secure connection. Ensure your computer or mobile devices have updated security software, including antivirus and anti-malware programs, and that your operating system and applications are current. Create strong, unique passwords for your banking accounts, combining letters, numbers, and symbols, and enable two-factor authentication (2FA) whenever possible for an added layer of security.

Be cautious of phishing attempts, which are fraudulent emails or messages designed to trick you into revealing login credentials or recipient information. Never send money to someone you do not know or trust, especially in response to unsolicited requests.