ACH, wire transfer or payment app: ways to move money in the US
In short: ACH transfers (direct deposit, bill pay, bank-to-bank transfers) are cheap and usually take one to three business days. Wire transfers are fast but often cost a fee and are very hard to reverse. Payment apps are quick for friends and family, but money you send to a scammer is often gone. Treat any instant payment like handing over cash.
ACH transfers
The Automated Clearing House (ACH) network moves money between US bank accounts in batches. Your pay by direct deposit, automatic bill payments and transfers between your own accounts at different banks usually go by ACH. They are often free and take about one to three business days, though same-day ACH exists. You need the other account's routing and account numbers.
Wire transfers
A wire moves money from bank to bank, often the same day. Banks usually charge a fee to send a wire and sometimes to receive one; international wires cost more and go through the remittance rules explained in our sending money home guide. Once a domestic wire is sent, it is very hard to get back, which is why scammers ask for them.
Payment apps (person to person)
Apps from banks and tech companies let you send money using a phone number or email. They are quick and often free for basic transfers. Points to know:
- Payments are often instant and final. If you send money to the wrong person or to a scammer, you may not get it back.
- Money left in some app balances is not held in an insured bank account in the same way as bank deposits. Read the app's terms or move the money to your bank.
- Only pay people you know and trust. Check the name and number before you press send.
Checks, cashier's checks and money orders
Paper payments are slower but still common for rent and deposits. See How to write, deposit and cash a check.
At a glance
| Method | Typical speed | Typical cost | Can it be reversed? |
|---|---|---|---|
| ACH transfer | 1 to 3 business days | Often free | Sometimes, for errors and unauthorized transfers |
| Wire transfer | Same day | Fee to send, sometimes to receive | Rarely |
| Payment app | Minutes | Often free; fee for instant transfer to bank | Rarely, if you sent it yourself |
| Check | Days | Low | You can ask to stop payment, for a fee |
Speeds and fees vary by bank and app, so check what applies to your account today.
Your rights if something goes wrong
Federal rules on electronic transfers (Regulation E) protect you against unauthorized transfers, such as someone taking money from your account without permission, if you report them in time. Report problems to your bank or app as soon as you notice them. Protection is usually much weaker if you were tricked into sending the money yourself.
Handy tools
- Remittance cost comparer: compare two transfer options by how much arrives.
General information, not financial advice. Rules, fees and rates change and depend on your situation. Check with your bank, the provider or a qualified professional before you decide.
Sources
- CFPB: What is an ACH transaction?
- CFPB: What is a wire transfer?
- CFPB: Is the money I keep in my payment app safe?
- CFPB: How do I get my money back after an unauthorized transaction?
- Federal Reserve: About FedACH