The Automated Clearing House processes payments in batches between US banks. When a client "pays by bank transfer" in the US, it is almost always an ACH credit: money pushed from their account to yours using your routing and account numbers. Settlement typically takes one to two business days, with same-day options for a premium.
ACH is a domestic US rail. Cross-border payments travel other networks — international wires via SWIFT, or SEPA transfers within Europe.
Why It Matters
For invoice payments, ACH is usually the cheapest rail on offer — transfers commonly cost cents rather than the percentage a card processor takes, which matters on a $10,000 invoice. The trade-offs are speed (days, not minutes) and the fact that ACH debits can be reversed in limited circumstances, unlike wires. For recurring B2B billing, ACH is very often the default.
Example
A consultancy adds its routing and account number to a $8,500 invoice. The client’s bookkeeper schedules an ACH payment; it lands two business days later having cost a fraction of the roughly $250 a 2.9% card fee would have taken.
Frequently Asked Questions
What is the difference between ACH and a wire transfer?
ACH is batch-processed, cheap and takes a day or two; a wire is processed individually, settles the same day, costs more, and once sent is effectively irreversible. Wires suit urgent or very large payments; ACH suits everything else domestic.