The wire network processes transactions in real time, so wire transfers are usually delivered quickly - within minutes or hours. An ACH payment, on the other hand, can take several days to settle (more on this in Chapter 3).
Sending a wire transfer within the US is expensive, costing the payer an average $25 per transaction (and fees can be even higher for international transfers). On top of that, some financial institutions may also charge the recipient a fee to receive the funds.
An ACH payment can be orders of magnitude cheaper per transaction than a wire transfer - something we explore more in Chapter 2.
Because of their high cost and speed, wire transfers are best for large or time-sensitive transfers, either within the US or abroad. But if time-sensitivity isn’t an issue, an ACH payment offers significant advantage over a wire transfer, with its lower cost.‹ View table of contents Next page ›