ACH (Automated Clearing House) is the electronic network that processes bank-to-bank transfers in the United States. It handles direct deposits, bill payments, and bank transfers — over 30 billion transactions worth $80 trillion per year. When you fund an international transfer from a US bank account, ACH is often the first step.
ACH transfers work by batching payment instructions and processing them through the ACH network, operated by the Federal Reserve and The Clearing House. When you initiate an ACH transfer, your bank sends a payment instruction to the ACH operator, which sorts and delivers it to the receiving bank. Unlike wire transfers that settle individually in real time, ACH processes transactions in batches throughout the day. This batch processing is what makes ACH cheap but also what makes it slower than wire transfers.
Standard ACH transfers take 1-3 business days to settle. Same-Day ACH, available since 2016, settles within the same business day if submitted before the cutoff times (there are multiple processing windows). The Federal Reserve also launched FedNow in 2023, an instant payment system that settles in seconds — though adoption is still growing. For funding international transfers, the ACH speed matters because it determines how quickly your provider receives the money and initiates the cross-border transfer. Some providers like Wise allow you to fund via ACH and will begin the international transfer before the ACH fully settles, speeding up the overall process.
ACH transfers are typically free for consumers — most US banks do not charge for outgoing ACH transfers. The per-transaction cost to the bank is only $0.002-0.01. However, there are limits: most banks cap ACH transfers at $25,000-100,000 per day, and some money transfer services have their own lower limits for ACH funding. Wire transfers have higher limits but cost $15-35 per transfer. For international remittances, ACH funding is the cheapest way to get money to a transfer provider or crypto exchange.
ACH itself only works within the United States — it cannot send money directly to a foreign bank account. For international transfers, ACH serves as the funding mechanism: you use ACH to move dollars from your bank to a transfer provider (Wise, Remitly, Coinbase), which then handles the cross-border leg using SWIFT, local payment rails, or crypto networks. Choosing ACH funding over wire transfer or debit card can save you $15-35 per transfer. RemitRoutes factors in the funding method when comparing total costs across providers.
Standard ACH takes 1-3 business days. Same-Day ACH settles within the same business day. FedNow (launched 2023) enables instant settlement, but not all banks support it yet.
For consumers, most US banks offer free ACH transfers. Businesses may pay small per-transaction fees. ACH is significantly cheaper than wire transfers ($15-35) or card payments (1-3% processing fees).
Not directly. ACH only works between US bank accounts. For international transfers, use ACH to fund your account at a transfer provider (Wise, Coinbase, etc.), which then handles the cross-border payment.
ACH is batch-processed, cheap (usually free), and takes 1-3 days. Wire transfers are processed individually, cost $15-35, and settle same-day or in hours. Wire transfers are better for urgent, large transfers; ACH is better for routine, cost-sensitive transfers.
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