What an ACH payment is and how to start one

An ACH payment is a transfer of money from your bank account to someone else's bank account, processed through the Automated Clearing House network. You initiate it yourself — you do not mail a check or hand over cash. The bank that holds your money (your bank) sends the instruction to the bank that holds the recipient's money (their bank), and the two banks coordinate the actual transfer.

To send an ACH payment, you need four pieces of information: the recipient's full name, their bank account number, their bank's routing number, and the amount you want to send. You enter these into your bank's website, mobile app, or by calling your bank directly. The payment does not leave your account when ready — ACH transfers take one to three business days to complete, depending on when you send it and how your bank processes them.

Key Takeaways

  • ACH payments move money directly from your bank account to someone else's, and you control when and how much to send.
  • You need the recipient's name, account number, routing number, and the amount — nothing else is required to start the transfer.
  • Most ACH payments take one to three business days to reach the other account, so plan ahead if the recipient needs the money on a specific date.
  • Your bank's website or app is usually the fastest way to send an ACH payment, though you can also call your bank or use a third-party payment service.
  • ACH payments are cheaper than wire transfers and safer than sending cash, but you cannot cancel one after it leaves your bank.

Where to find the recipient's routing and account numbers

The recipient's routing number and account number are printed on their checks, if they have them. The routing number is a nine-digit code at the bottom left of the check; the account number is at the bottom center. If the recipient does not have checks or you cannot see them, ask the recipient directly — most people know their own account and routing numbers, or can find them by logging into their bank's website or calling their bank.

Some recipients will give you a preprinted form with this information already filled in. Employers often provide this for direct deposit, and landlords or utility companies may include it in a payment instruction letter. If you are paying a business, their website often lists the account and routing information in a "pay us" or "payment methods" section. Do not guess or use information from an old check — routing numbers can change if a bank merges or reorganizes, and using the wrong number means your money goes to the wrong place.

How to send an ACH payment through your bank

Log into your bank's website or open your mobile app and look for a section called "Send Money," "Transfer Funds," "Pay Someone," or "ACH Transfer." Click or tap that option. You will see a form asking for the recipient's name, account number, routing number, and the amount. Enter each piece of information carefully — a single digit wrong in the account or routing number will send the money to the wrong account.

After you enter the information, your bank will usually ask you to confirm the details before the payment is sent. Read through the confirmation screen and make sure the amount and recipient name match what you intended. Once you confirm, the payment is submitted to the ACH network. Your bank will show the payment in your transaction history, usually marked as "pending" until it clears in one to three business days.

If you do not have online banking set up, call your bank's customer service number and tell them you want to send an ACH payment. They will ask for the same information and submit it for you. This takes longer than using the website or app, but it works if you prefer to speak with someone or do not have internet access.

When your ACH payment will arrive

ACH payments are processed in batches at set times each business day. If you send a payment before your bank's cutoff time (usually late morning or early afternoon), it may be processed the same day and arrive at the recipient's bank the next business day. If you send it after the cutoff, it enters the next batch and arrives two business days later. Weekends and bank holidays do not count as business days, so a payment sent on Friday afternoon will not arrive until Tuesday or Wednesday.

Your bank's website usually tells you the expected arrival date when you confirm the payment. If the recipient says they have not received the money by that date, contact your bank to check the status. The payment may be held up at the recipient's bank for verification, especially if it is a large amount or the first transfer to that account. Your bank can see where the money is in the system and help troubleshoot if something went wrong.

ACH payments versus other ways to send money

ACH payments are slower than wire transfers but cheaper and safer. A wire transfer moves money in hours and costs $15 to $50, depending on your bank. An ACH payment takes one to three days and usually costs nothing. Wire transfers are best when the recipient needs money urgently; ACH is best when you have time and want to avoid fees.

Sending money through a payment app like Venmo or PayPal is faster than ACH for small amounts between individuals, but those services charge fees if you want the money to arrive when ready. ACH is also more find than mailing a check, because the recipient does not have access to your account number — they only receive the money. If a check is lost or stolen, someone else can cash it; if an ACH payment is sent to the wrong account, your bank can sometimes reverse it, though this is not may provide.

What happens if you make a mistake

If you realize you sent an ACH payment to the wrong account or for the wrong amount, contact your bank when ready. Once the payment leaves your bank, you cannot cancel it yourself. Your bank can submit a reversal request to the recipient's bank, but the recipient's bank is not required to send the money back — they will only do so if the recipient agrees or if the account was closed. This process can take weeks.

The best protection is to double-check the recipient's name, account number, and routing number before you confirm the payment. If the recipient's name on the form does not match the account name at their bank, the payment may be rejected or delayed. Some banks now use a service called Positive Pay that lets you verify the recipient's name before the payment is sent, though not all banks offer this yet.

Using a third-party service to send ACH payments

If you do not have a bank account or prefer not to use your bank's website, you can send an ACH payment through a third-party service like PayPal, Square Cash, or your employer's payroll system. These services connect to your bank account and submit ACH payments on your behalf. The process is similar: you enter the recipient's information, confirm the amount, and the payment is sent.

Third-party services may charge a fee, especially if you want the money to arrive faster. Some services also limit how much you can send in a single payment or per day. Read the service's terms before you use it to understand what fees explore and how long transfers take. If something goes wrong, you may need to contact the third-party service rather than your bank, which can make the process slower.

Frequently Asked Questions

Can I cancel an ACH payment after I send it?

Not after it leaves your bank. If you catch the mistake before the cutoff time on the same day, call your bank when ready and ask them to recall it. If the payment has already been submitted to the ACH network, your bank can request a reversal, but the recipient's bank does not have to honor it. The best approach is to contact the recipient directly and ask them to return the money.

What if the recipient's bank rejects the ACH payment?

The money will be returned to your account, usually within one to three business days. Your bank will notify you that the payment was rejected and may tell you why — common reasons include a closed account, incorrect account number, or a mismatch between the name on the payment and the name on the account. Contact the recipient to get the correct information and try again.

Is there a limit to how much I can send with an ACH payment?

Most banks allow ACH payments up to $10,000 per day, though some allow more. Your bank may have different limits depending on your account type and history. Check your bank's website or call customer service to find out your specific limit. If you need to send more than your limit, you can split it into multiple payments on different days or use a wire transfer instead.

Do I need to tell the recipient I am sending an ACH payment?

Yes, especially if they are expecting payment by a certain date. Let them know you are sending an ACH payment and when it should arrive. If the recipient is a business, they may have instructions about what information to include in the payment (like an invoice number or account number). Some businesses use that information to match the payment to your account in their system.

What if I send an ACH payment to someone I do not know?

Once the payment leaves your bank, you have limited recourse if the recipient does not send you what they promised. ACH payments are not protected the way credit card purchases are. Only send ACH payments to people or businesses you trust, or use a payment method with buyer protection if you are making a purchase from someone new.