When sending or receiving money, you have several payment options, each with different speeds, costs, and cut-off times. Here’s a simple breakdown of ACH, ACH Same-Day, and wire transfers, along with the relevant fees.
What is an ACH Payment?
ACH payments are electronic transfers between U.S. bank accounts, often used for direct deposits, bill payments, and bank-to-bank transfers.
Processing Time: Typically 1-3 business days.
Cost: Affordable, making it a popular choice for routine transactions.
Fee: 1% of the transaction amount with a minimum fee of $1 USD.
What is ACH Same-Day?
ACH Same-Day payments are processed more quickly than standard ACH, ensuring that funds are transferred within the same business day if submitted on time.
Processing Time: Same business day if initiated before the cut-off time (around 2:45 PM ET). Payments submitted after the cut-off will be processed the following business day.
Cost: Slightly higher than standard ACH due to the faster processing time.
Fee: 1% of the transaction amount, with a minimum fee of $2 USD.
What is a Wire Transfer?
Wire transfers are used for fast, often larger, domestic or international transfers. They are processed in real-time, meaning funds usually arrive on the same day for domestic transfers and 1-2 business days for international transfers.
Processing Time: Domestic wire transfers are processed within hours, and international transfers typically take 1-2 business days.
Cost: Higher than ACH transfers, reflecting the faster processing and larger amounts typically transferred.
Fee: 1% of the transaction amount, with a minimum fee of $25 USD.
Cut-off Times for Business Days
The time of day you initiate a transfer can impact when it is processed. Payments must be submitted before the cut-off times to be processed on the same business day.
ACH Standard: Payments initiated before 6:00 PM ET are processed within 1-3 business days.
ACH Same-Day: Payments must be submitted before 2:45 PM ET to be processed the same day. After this cut-off, they will be processed on the next business day.
Wire Transfers: Wire transfer cut-off times vary by bank but are generally between 2:00 PM and 5:00 PM ET. Transfers submitted after these times will be processed the following business day.
Quick Comparison
Feature | ACH Payment | ACH Same-Day | Wire Transfer |
Processing Time | 1-3 business days | Same business day (if before cut-off) | Same-day or next-day |
Cost | 1% fee (min $1 USD) | 1% fee (min $2 USD) | 1% fee (min $25 USD) |
Cut-off Time | ~6:00 PM ET | ~2:45 PM ET | ~2:00 PM - 5:00 PM ET |
Best For | Routine transfers | Faster ACH transfers | Large, urgent domestic or international transfers |
How to Choose the Right Payment Option
Use ACH for regular transfers that aren’t time-sensitive, as it's more cost-effective.
Use ACH Same-Day if you need funds transferred within the same business day and are able to meet the cut-off time.
Use Wire Transfers for large, time-sensitive transactions, especially internationally, where speed is essential.
Make sure to initiate transfers before the cut-off times to ensure timely processing.
If you have any questions or need further assistance, feel free to contact us!