ACH (Automated Clearing House) and Wire Transfer are electronic methods used for transferring money in India. But they differ significantly to process time, fees, and use cases. A clearing house facilitates an ACH transfer, which is typically used to process payments or direct deposits. But, if you see wire transfers, they are carried out via a bank and usually utilised for high-value transactions. Let’s check out the ACH transfers vs wire transfers difference.
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ACH Transfer vs Wire Transfer
Although wire transfers and ACH operate similarly, they have differing deadlines and regulations. Here’s the ACH v wire transfer difference:
ACH Transfer | Wire Transfer |
ACH transactions are processed in batches, and the settlement may take 1-2 business days. | Wire transfers are processed in real-time, allowing money to be transferred within hours or on the same day. |
It is used for smaller, recurring payments like salaries, bill payments, or direct debits. | It's used for urgent and large-value transfers, both domestically and internationally. |
ACH transfers are usually low cost or even free. Banks and financial institutions rarely charge high fees for ACH transactions, making it ideal for regular payments. | Wire transfers come with higher fees, especially for international transactions. These fees vary depending on the bank or service provider, ranging from Rs.50 to 2,000 for domestic transfers and higher for international ones. |
It is used for automated payments, salary deposits, utility bill payments, and recurrent transfers. It's well-suited for smaller amounts. | Wire transfers are preferred for large-value transactions, such as business payments real estate deals, or urgent international transfers. |
ACH transfers are secure, but they may be subject to fraud or errors in case of wrong details. It’s typically protected by encryption and authentication. | Wire transfers are generally more secure and faster, as they are processed directly between banks, with no intermediaries. |
I hope you understand how is ACH different from wire transfer.
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How is ACH Different from Wire Transfer?
priya
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3 months
2025-01-23T09:41:41+00:00 2025-01-23T09:41:42+00:00Comment
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