What are ACH transfers?

ACH transfers are electronic, bank-to-bank money transfers processed through the Automated Clearing House (ACH) Network. According to Nacha, the association responsible for these transfers, the ACH network is a batch processing system that banks and other financial institutions use to aggregate these transactions for processing. 1

Are ACH payments safe?

ACH payments are very safe because they go through a clearing house that has strict rules about confidentiality of information. While not 100% perfect, ACH transfers typically have an extremely low rate of error. For many, this information allays their worries about safety. There are a few potential cons when it comes to using ACH transfers.

What are some examples of ACH payments?

Business-to-business payments are another example. (If you own a small business, see our guide to ACH transfers for businesses.) For sending money to friends and family, many transfer providers — including banks and third-party apps like PayPal, Venmo and Zelle — use the ACH network.

Are ACH and wire transfers secure?

Both ACH and wire transfers are secure, though the latter is frequently used by scammers to target unsuspecting victims for wire fraud. For example, you may receive an email telling you that you’ve won a contest, but in order to claim the money, you must first pay a processing fee using a wire transfer.