Wire Transfer vs ACH: Complete Guide
Both wire transfers and ACH are electronic methods for moving money between bank accounts, but they serve different purposes with different costs and timelines.
ACH Transfer
Wire Transfer
What is ACH?
ACH (Automated Clearing House) is a network that processes electronic payments in batches. Managed by Nacha, it handles over 30 billion transactions annually.
Advantages
- • Free or low cost ($0-3)
- • Transactions can be reversed
- • Easy recurring payment setup
- • Widely accepted by all US banks
Limitations
- • Takes 1-3 business days
- • Daily/monthly transfer limits
- • Domestic US only
- • Not ideal for urgent payments
Common ACH Uses
What is a Wire Transfer?
A wire transfer is a direct, real-time transfer of funds between banks. Unlike ACH, wires are processed individually and settle the same day using Fedwire (domestic) or SWIFT (international).
Advantages
- • Same-day guaranteed delivery
- • No transfer limits
- • Works internationally
- • Irrevocable (guaranteed funds)
Limitations
- • $15-50 domestic, $35-80 international
- • Cannot be reversed (fraud risk)
- • Usually requires bank visit/call
- • Overkill for small amounts
Common Wire Uses
Side-by-Side Comparison
| Feature | ACH Transfer | Wire Transfer |
|---|---|---|
| Speed | 1-3 business days | Same day ⚡ |
| Cost (Sending) | $0-3 ✓ | $15-50 domestic |
| International | Not available ✗ | Worldwide ✓ |
| Reversible | Yes (60 days) ✓ | No ✗ |
| Transfer Limits | $1K-$25K typical | No limit ✓ |
| Best For | Payroll, bills, recurring | Real estate, large amounts |
Which Routing Number to Use?
Important: Some banks have different wire routing numbers
Large banks like Chase, Bank of America, and Wells Fargo often use separate routing numbers for ACH and wire transfers. Always verify with your bank before initiating a wire transfer.
For International Wire Transfers, You'll Need:
When to Use Each Method
ACH Use ACH When...
- → Paying monthly bills (rent, utilities)
- → Setting up direct deposit
- → Transferring between your accounts
- → Sending money to friends (non-urgent)
- → Business vendor payments
⚡ Use Wire When...
- → Closing on real estate
- → Same-day payment required
- → Sending money internationally
- → Buying a vehicle
- → Recipient requires guaranteed funds
Security Considerations
Wire Transfer Fraud Alert
Wire fraud is a major concern because wires are irreversible.
Always verify wire instructions by calling a known phone number—never one from an email.
ACH Protection
ACH offers better fraud protection since transactions can be reversed.
Banks offer 60-day return windows for unauthorized consumer debits.
Find Your Bank's Routing Number
Search our verified database of US banks and credit unions.
Search Routing Numbers →