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Difference Between ACH and Wire Transfer

ACH vs Wire Transfer

ACH (Automated Clearing House) transfer and Wire transfer are two of the most common methods in sending or transferring money. More and more people everyday has inclined in using these two methods because it’s only not convenient but also the money arrives to the receiver fast.

ACH or Automated Clearing House

The ACH money transfer deals with large volume of payments like that of a company’s payroll and payments to bills and loans. It is governed by National Automated Clearing House Association which is more formally known today as NACHA – The Electronic Payments Association. ACH transactions are quite safe since they have rule that financial institutions cannot process accounts without the permission of the receiver or the account holder.

Wire transfer

Wire transfer system is a more personalized kind of money transfer. It is usually made from one bank to the other. Others may also refer it as Bank transfer wherein no actual cash is involved but only electronic balances. Majority of the people who have families in other countries uses this transfer system. This is a secure way in sending and/or receiving money since both account holders have a clear identification.

Difference between ACH and Wire Transfer

ACH money transfer is more suitable for companies and government agencies wherein their transaction usually in volumes especially on the payroll of the employees while Wire transfer is much suited for individual person who wishes to send/receive money fast and minimal risk only.

ACH may be regarded as business to business transaction whereas Wire transfer is more of a person-to-person transaction.

ACH is governed and maintained by NACHA’s set of rules and regulations. Like ACH, wire transfer has also rules set by the banks involved in the process.

Even though wire transfer is a bit secure way of sending money, it has still some flaws like if someone uses wire transfer to buy online, the seller might be using fake identifications and might not send the agreed item. But when in ACH, you can be sure of the identifications since an institution needs to be a member first of the ACH network before they can transact.


• ACH needs the financial institutions or establishments to be a member first of the ACH network before they can transact while in Wire transfer anyone with bank accounts can do a transfer.

• ACH usually deals with volume of payments or amounts and more like a business-to-business transaction whereas wire transfer is more of a personalized transaction and more suited for ordinary people.


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