How ACH payments work and what you need to get your free guide
An ACH payment moves money directly from one bank account to another through the Automated Clearing House network. You initiate it through your bank or a payment service, provide the recipient's routing number and account number, and the money typically arrives in one to three business days. You do not need the recipient to be present, and the cost is usually free or under a dollar.
The process is straightforward because banks handle the routing and verification behind the scenes. Your bank checks that the receiving account exists, processes the debit from your account, and sends the funds through the ACH network to the recipient's bank. The recipient's bank then deposits the money into their account. The entire transaction is recorded, so you have a paper trail if something goes wrong.
Key Takeaways
- You need the recipient's full name, routing number, and account number to send an ACH payment; you can find routing numbers on your bank's website or by calling the recipient's bank.
- ACH payments take one to three business days to arrive, so plan ahead if the recipient needs the money on a specific date.
- Most banks let you set up ACH payments through online banking, mobile apps, or by calling customer service; some also allow recurring payments for bills or regular transfers.
- ACH payments are reversible within a limited window if you catch an error, but once the money arrives and the recipient withdraws it, recovery becomes much harder.
Getting the information you need before you start
Before you can send an ACH payment, you need three pieces of information about the recipient: their full legal name, their bank's routing number, and their account number. The name must match what is on file at their bank, or the payment may be rejected or delayed. Ask the recipient to confirm the spelling of their name exactly as it appears on their account.
The routing number is a nine-digit code that identifies the recipient's bank. You can find it by asking the recipient directly, looking it up on their bank's website, or calling their bank and asking for the routing number. Write it down carefully—one wrong digit will send the money to the wrong bank. The account number is usually 8 to 17 digits and identifies the specific account within that bank. The recipient can find both numbers on the bottom left of a check, or by logging into their online banking.
Double-check all three pieces of information before you proceed. A wrong name or routing number is the most common reason ACH payments fail or go to the wrong place. If you are unsure, contact the recipient or their bank directly rather than guessing.
Sending an ACH payment through your bank
Most banks let you send ACH payments through online banking or a mobile app. Log in to your account, look for a "Send Money," "Transfer," or "Pay" option, and select ACH or "Bank Transfer." Enter the recipient's name, routing number, and account number in the fields provided. Your bank will ask you to confirm the amount and may show you a preview of the transaction before it is final.
Some banks require you to add the recipient as a "payee" before you can send money to them. This is a one-time step that stores their information for future payments. After you add them, you can send money to that payee without re-entering their details each time. If your bank requires this, the system will prompt you to add them the first time you try to send money to a new recipient.
Once you confirm the payment, your bank will debit your account when ready and send the funds through the ACH network. You will receive a confirmation number and a record of the transaction in your account history. The money will not arrive at the recipient's bank until the next business day at the earliest, and may take up to three business days depending on when you sent it and the recipient's bank's processing schedule.
Setting up recurring ACH payments for bills and regular transfers
If you send the same amount to the same person or company regularly, you can set up a recurring ACH payment instead of sending a new payment each time. Log into your bank's online banking, find the recurring payment or autopay option, and enter the recipient's information, the amount, and how often you want the payment to go out (weekly, monthly, etc.). Your bank will process the payment automatically on the schedule you choose.
Recurring payments are useful for rent, loan payments, subscription services, or regular transfers to family members. You can pause, change the amount, or cancel a recurring payment at any time through your online banking. Most banks let you set an end date so the payments stop automatically after a certain date, or you can cancel them manually whenever you want.
Be careful with the amount and frequency—if you set up a recurring payment by mistake, it will keep going out until you cancel it. Check your account regularly to make sure the payments are going through as expected, especially the first few times.
What to do if an ACH payment fails or goes to the wrong account
ACH payments fail most often because the recipient's routing number or account number is wrong, or because the name does not match the account exactly. When a payment fails, your bank will return the funds to your account within one to three business days and send you a notification explaining why. Check your account to confirm the money came back, and contact the recipient to get the correct information before trying again.
If you sent money to the wrong account by mistake, contact your bank when ready. ACH payments can be reversed within a limited window—usually one to two business days—if you catch the error quickly. Your bank can file a reversal request with the receiving bank, but the success depends on whether the recipient has already withdrawn the money. If the funds have been moved, recovery becomes a civil matter between you and the recipient, and your bank's ability to help is limited.
To avoid sending money to the wrong account, verify the recipient's information with them directly before you hit send. Ask them to confirm their routing number and account number, and make sure the name matches their account exactly. A few seconds of verification can save you days of trying to recover a misdirected payment.
ACH payment limits and timing you should know about
Most banks set daily and monthly limits on how much you can send via ACH. These limits vary by bank and by account type—a checking account might have a lower limit than a savings account, and a new account might have a lower limit than an established one. Check your bank's website or call customer service to find out what your limit is. If you need to send more than your limit allows, you can contact your bank to request a temporary increase, though approval is not may provide.
ACH payments take one to three business days to arrive, depending on when you send them and the receiving bank's processing schedule. If you send a payment on a Friday after business hours, it will not be processed until Monday, and may not arrive at the recipient's bank until Tuesday or Wednesday. Plan ahead if the recipient needs the money by a specific date. If you need money to arrive the same day, ACH is not the right tool—wire transfers or when ready payment services are faster, though they usually cost more.
Weekends and bank holidays do not count as business days. If you send a payment on a Friday, the first business day is Monday. If you send it on a holiday, the clock does not start until the next business day.
Frequently Asked Questions
Can I cancel an ACH payment after I send it?
Yes, but only if you act quickly. You have until the end of the business day you sent it, or sometimes the next business day, to cancel. Contact your bank when ready and ask them to recall the payment. If the receiving bank has not processed it yet, your bank can stop it. Once the money arrives and the recipient withdraws it, cancellation becomes much harder and may require the recipient's cooperation.
What happens if I give the wrong account number?
The payment will likely be rejected and returned to your account within one to three business days. Your bank will notify you of the rejection and the reason. If the account number is close to a real account at that bank, there is a small chance the money could go to the wrong person—which is why verification before sending is critical.
Is ACH safer than a wire transfer?
ACH is reversible within a limited window, which makes it safer if you catch an error quickly. Wire transfers are faster but permanent—once sent, they are nearly impossible to recover. For large amounts or unfamiliar recipients, ACH is the safer choice because you have time to verify the transaction went to the right place.
Do I need to be at my bank to send an ACH payment?
No. You can send ACH payments through online banking or a mobile app from anywhere, anytime. You do not need to visit a branch or call customer service unless you want to request a limit increase or need help troubleshooting a failed payment.
Can I send an ACH payment to someone at a different bank?
Yes. ACH payments work between any two banks in the United States that participate in the ACH network, which is nearly all of them. As long as you have the recipient's routing number and account number, you can send money to them regardless of which bank they use.