With the advancement in technology, our living style and ways of doing things have now changed significantly. The same is applicable to monetary transactions by means of fund transfers, making payments, etc. Along with various other modern solutions, money transfer through ACH is a prominent one. This requires only your bank account number along with the routing number. Using this method allows you to avoid carrying cash or a card when you go to make a purchase. To assist you in habituating to the process, we provide list of banks that accept ACH transfers while covering some most relevant aspects.
What Is ACH Transfer?
In banking terms, ACH is the short form of Automated Clearing House. It is a fund-transferring method between two or more banks. So far, ACH is the secure and reliable electronic method for transferring funds between bank accounts.
In this case, ACH transfers use a nationwide network of banks and financial institutions to smoothly transfer funds. In the first stage, your bank initiates the ACH transfer by transmitting the associated routing and account numbers to the ACH network.
After receiving the fund transfer request from your bank, the ACH network facilitates the transfer of funds to the recipient’s bank. In this way, the money is then credited to the recipient’s account. Here, in the ACH transfer method, there is a minimum time requirement.
Depending on bank-to-bank relations and the load on the ACH network, the money usually gets transferred within 1-3 days. For payment-related money transfers, it takes 24 hours.
Benefits of ACH Transfer
The following are the competitive advantages of using the ACH mode of money transfer.
- In most cases, there are no fees associated with the money transfer.
- It is faster than the “Wire Transfer.”
- ACH transfer offers a greater level of convenience.
- This money transfer method does not host human-made errors. So, you can expect that correctness in the transactions.
- To make a monetary transfer through ACH is very easy. If you have some knowledge and practice of navigating any website, you can do the transfer.
- The ACH transfer saves you time and effort.
- The ACH Network is encrypted. It means ACH money transfer is highly secured.
- It allows recurring payments.
Differences Between ACH and Wire Transfers
To inform you of the differences associated between an ACH and a Wire transfer, we have detailed each factor.
1. Speed of the Money Transfer
In the case of money-transfer speed, the ACH method is better than the wire transfer. An ACH transfer usually takes 1-3 business days. On the other hand, the Wire Transfer take more days.
2. Cost
The money transfer cost is very little or zero in the case of ACH transfers. Whereas, for Wire Transfer, you have to pay $20-$30 depending on the recipient bank policy, your bank’s policy, and the destination bank if you are transferring the fund to another country.
3. Limit
In general consideration, you can transfer up to $1 million in a single day. You should use the ACH method for transferring a small amount of money. Examples are paying the bills at restaurants, utility bills, etc. On the other hand, you can transfer $100,000 using the Wire Transfer facility. So, you use wire transfers for bigger deals.
4. Reversing the Transfer
In the case of ACH, you can reverse the transfer within the day. But, unfortunately, reverting a Wire transfer is not possible. For international transfers, there is a 30-minute window to cancel the transfer.
10 Best List of Banks That Accept ACH Transfers
Here, we elaborate on top US Banks that accept ACH transfers. Also, we will provide some other banking solutions.
1. Citizens Bank
This bank is operating in 15 states. It has a physical presence at 1065 places with two wealth centres in Pennysalvenya and Florida. The ban cultivates a diverse endeavor in every sector of the bank. Following this, Citizens Bank accepts ACH payments.
2. Capital One Bank
It allows ACH transfer. By having an account and a debit card from Capital One Bank, you have access to 70,000 ATMs in the USA. It also does not ask for any minimum deposit for savings and checking accounts.
3. Bank of America
This bank is highly popular among people. The reason behind this is that it has a huge ATM network. It not only allows you to go for an ACH Transfer but also allows you to withdraw money easily.
4. Chase Bank
This bank is highly popular among people due to its 16,000 ATMs and 4,700 physical branches. Also, Chase Bank’s credit card users get various facilities. This bank also accepts ACH transfers.
5. HSBC
HSBC is highly recommended for international money transfer. This bank has physical branches in several countries. By using its ACH facility, you can transfer money to te person who lives outside of the USA. However, for international transactions, there are some requirements that you need to fulfil.
6. U.S. Bank
The U.S. Bank is a leading financial institution in the USA. It offers fund transfers through the ACH network, allowing you to go for over-drafting without fees. It has more than 3,000 physical branches and 4,842 teller machines for deposit and withdrawal.
7. T.D. Bank
This bank operates in 15 states, including Washington, D.C. It accepts money transfers via ACH. It is considered a prominent investment bank in the USA.
8. PNC Bank
PNC bank has a huge coverage within the USA. Almost every state has one or multiple physical branches. It accepts money transfers through the ACH network.
9. USAA Bank
This bank allows taking money for ACH transfers. It is a good choice of yours as it offers low charges for transfer. Also, the huge number of ATMs available makes USAA a quality bank.
10. Regions Bank
This bank is highly reputed and a member of the S&P 500. It transfers money through the ACH medium. Also, the free is very low.
More List of Banks That Accept ACH Transfer
The following is a list of other banks that accept fund transfers through ACH method.
- Huntington Bank
- Fifth Third Bank
- Wells Fargo
- And many more.
List of Online Bank that Accept ACH Transfers
The following is a list of banks that have online presence only, and these banks do not have any physical branches.
1. Ally Bank
Ally Bank is definitely the bank for future generations. It does not have any physical branches like the conventional banks. It is an online bank. Ally Bank stands out by eliminating overdraft fees and offering convenient customer service options. This virtual bank accepts fund transfers via the Automated Clearing House method.
2. Chime bank
This bank is an online bank. It does not have any physical branches. While accepting ACH transfers, it also offers several other benefits. The advantages you get by using Chime Bank are zero deposit requirements, low fees, etc.
3. Discover Bank
Discover Bank is also another online bank. It accepts money transfers through ACH. Most amazingly, for each transaction you make using the associated debit card, you get a cash-back opportunity.
4. Axos Bank
From bill pay to monthly balance requirements, AXOS Bank is highly suitable. The reason is that the associated fees are zero. Also, it accepts an ACH money transfer facility. It has three physical locations: California, Nevada, and Ohio. But, they do not actually serve the purposes like any other conventional bank’s branches.
5. NBKC Bank
This Bank does not require keeping any minimum amount. Also, the money transfer fee through ACH is very low. Most essentially, it does not charge any fee for maintenance charge. It has two physical locations; one is in Missouri and the other is in Kansas. But, they do not actually serve the purposes like any other conventional bank’s branches.
6. Vio Bank
Vio Bank prioritizes wealthy persons or businesses. This bank usually deals with big amounts. Even though Vio accepts the ACH transfer, we suggest you do not go for it if you want to transfer a very small amount, like $500 bucks.
7. Capital One 360
Capital One 360 is well known for its smooth and friendly service. This online bank accepts ACH transfers in exchange for a very small amount.
8. Wise
Wise allows you to use ACH in various ways. You can make ACH payments to individuals within the US and other 80+ countries’ banks that have business relationships with Wise.
9. PayPal
Even though PayPal is not a bank in any terms, its superiority and flexibility have directed us to add it to this list. With PayPal, you can make ACH Payments.
10. Payoneer
First, we must admit that Payoneer is not an online or physician bank. Like PayPal, this platform allows money transactions digitally. It accepts ACH payments. You can use this service for both domestic and international payments.
ACH Transfer Limit and Cost
In this section, we describe the associated cost and limit of ACH Transfer.
Cost
For some banks, the money transfer using ACH can cost you around $3 on average. However, there are many banks and financial institutions that do not charge you a single penny.
Limit
The limit varies depending on the policies of the bank or financial institution. For instance, Bank of America allows you to transfer $3,500 per day, while Well Fargo allows you to transfer $12,500. Again, JP Morgan allows $25,000 per day via ACH.
How Much Time Does an Ach Transfer Take?
In general, the ACH transfer takes 1-3 business days. But, if you want a same-day transfer, then you have to pay additional fees to send money on the same day.
Final Words
We hope that now you have a clear idea about the list of banks that accept ACH transfers. You can use the mentioned service to transfer money through the ACH process. The given list consists of online banks and some other banks with physical branches. Finally, consider the fees while going for ACH transfer with a certain bank.
People Also Ask
Yes, you can transfer funds internationally through ACH. We suggest you compare the fees associated with ACH and Wire transfer before sending the amount.
It is certain that ACH is more suitable than SWIFT. Money transfer through ACH is cost-effective, and the transfer takes a small amount of time. On the other hand, SWIFT is expensive, and the transfer takes a significant amount of time.
It is for sure that RTGS takes less time than ACH. The reason is that ACH handles the transcription in a bulk amount. Whereas, RTGS deals with transactions independently.
An ACH transfer is quite safe. However, the person who gets to know the account and routing number can do fraudulent activities.
ACH is actually the money transferring from bank to bank. So, when your account receives the funds, you use your debit card to cash out through an ATM.
Amanda Smith is a professional personal finance and sustainability writer who enjoys writing about everything from Banking to unique Financing options like all kind of banking and Personal finance. You can find his work on sites like Transfer Money, Debit card, Credit Card.