ACH- ACH refers to a digital money transfer process through the Automated Clearing House network. It enables both personal and commercial transactions and direct bank-to-bank payments. ACH transactions involve any digital payment made by one individual to another or to any business. For example, recurring utility bills, subscription fees, tax refunds, B2B transactions, etc. Wire transfer- ​WIRE transfers allow an individual to transfer money electronically even when they are in different geographical locations. The money is transferred from one bank account to another without the involvement of cash. Read more about it here- https://www.salt.pe/blog/ach-vs-wire-transfer Watch this video- https://www.youtube.com/watch?v=dmpzN-2Dw4c&t=26s Salt is a fintech startup based out of Bangalore, helping businesses thrive in the international market with effortless international payments and the compliances. Read more about Salt here: https://www.salt.pe

1. ACH vs. WIRE
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Which is the best option
for USD Payments?

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What is
ACH
ACH refers to a digital money transfer process
through the Automated Clearing House network.
It enables both personal and commercial
transactions and direct bank-to-bank payments.
The ACH network is a US-specific network of
over 10,000 financial organisations.

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The Originator
An ACH operator
The receiver’s financial institution
The Receiver
Parties required for
ACH Transaction

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ACH payments
Types of
There are two types of ACH payments:
Credit Transfer
ACH credits are the payments where one ‘pushes’
out money from their bank accounts.
Direct Debit Payment
These are payments where the money is ‘pulled’
from your account, in the cases of utility dues,
insurance premiums, interests, mortgages,
etc., without any intervention.

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What is
WIRE
WIRE transfers allow an individual to transfer money
electronically even when they are in different
geographical locations.
The money is transferred from one bank account to
another without the involvement of cash.

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So…what's shared
in place of cash?
Instead of cash, the following information is shared with the bank:
Name, address, and bank account number of the recipient
IFSC code of the recipient’s bank
SWIFT (Society for Worldwide Interbank Financial Telecommunication)
/BIC (Business Identifier Code) number of sender and receiver bank.
The amount that is to be transferred.
The reason for the transfer.

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So, what's the
difference between two?
WIRE
Can be used for
international transfers.
Better in situations where a
huge amount of funds are to
be transferred urgently.
These transfers are initiated by
the banks, which makes it easier,
but a fee is to be paid for the use
of the services.
ACH
US specific network of banks hence
the geographical limitations exist.
ACH is ideal for smaller
transactions that are non-urgent.
They might take some time to get
credited but are usually free of
cost.

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