What is an ACH transfer?
An ACH transfer is the electronic movement of money between banks through the Automated Clearing House network.
ACH transfers include external funds transfers, person-to-person payments, bill payments and direct deposits from employers and government benefit programs. (Business-to-business payments are another one.) For sending money to friends and family, many transfer providers — including banks, Zelle and third-party apps like PayPal and Venmo — use the ACH network.
Types of ACH transfers
ACH transfers are processed in two ways, which vary in delivery speed and your cost:
ACH debit transactions involve money getting “pulled” from an account. When you set up a recurring bill payment, for example, the company you’re paying can pull what it’s owed from your account each month.
ACH credit transactions let you “push” money online to accounts at different banks, either accounts you own or friends’ and family members’ accounts.
