What you need before you start

Setting up an ACH payment means moving money from your bank account to someone else's through the automated clearing house network. You will need the recipient's bank account number, routing number (a nine-digit code that identifies their bank), and the name of their bank. You will also need to know whether the account is a checking or savings account.

The recipient should give you these details directly or in writing. If you are paying a business or government agency, they often list this information on their website or invoice. Never ask for these details over the phone unless you initiated the contact and can verify the number independently.

Have your own bank account information ready too — specifically your account number and the routing number for your bank. You will enter these when you set up the payment, and your bank will use them to pull the money from your account.

Key Takeaways

  • You need the recipient's bank account number, routing number, and bank name before you can set up an ACH payment.
  • Most banks let you set up ACH payments through online banking, mobile apps, or by calling customer service.
  • ACH payments typically take one to three business days to reach the recipient's account, not the same day.
  • Once you set up a recurring ACH payment, you can usually pause or cancel it anytime through your bank's website.
  • If money goes to the wrong account, contact your bank when ready — recovery is possible but not may provide.

Setting up ACH through your bank's website or app

Log into your online banking portal or mobile app and look for a section called "Send Money," "Pay Bills," "Transfers," or "External Transfers." The exact name varies by bank. Once you find it, you will usually see an option to add a new recipient or payee.

Enter the recipient's name, bank account number, routing number, and account type. Your bank will ask you to verify this information — some banks confirm it when ready, while others send a small test deposit (usually under one dollar) to the account and ask you to confirm the amount. This verification step protects you from sending money to the wrong place.

After verification, you can set up a one-time payment or a recurring payment. For a one-time payment, enter the amount and the date you want the money to leave your account. For recurring payments, choose the frequency (weekly, biweekly, monthly) and when you want it to start and end. Review all details before confirming — once submitted, you cannot always cancel when ready.

Setting up ACH by phone or in person

If you do not use online banking or prefer to speak with someone, call your bank's customer service number on the back of your debit card. Tell them you want to set up an ACH payment and have the recipient's information ready.

The representative will walk you through the same steps: confirming the recipient's bank details, verifying the account, and setting the payment amount and date. They may ask security questions to confirm your identity. This method takes longer than online setup but works if you are not comfortable with the website or app.

You can also visit a branch in person, though many banks now require you to set up ACH payments online or by phone. Call ahead to confirm your branch can do this.

How long ACH payments take

An ACH payment typically takes one to three business days to reach the recipient's account after you submit it. This is not the same as the date you schedule the payment for — the date you choose is when your bank will process it and send it into the ACH network, not when the money arrives.

If you schedule a payment for a Friday, your bank processes it on Friday, but the recipient's bank may not receive and post it until Monday or Tuesday. Weekends and bank holidays add time. Some banks offer "next-day ACH," which guarantees delivery by the next business day, but this is not standard and may have limits on the amount you can send.

Plan ahead. If a bill is due on the 15th, do not schedule the ACH payment for the 14th. Schedule it for the 10th or 11th to give the network time to work.

Setting up recurring ACH payments

Recurring ACH payments are useful for bills that stay the same amount each month — rent, loan payments, insurance premiums, or subscription services. When you set up a recurring payment, you choose the amount, the frequency, and the start and end dates.

You can pause or cancel a recurring ACH payment anytime through your bank's website or app. Look for the payment in your list of scheduled transfers and select "Edit," "Pause," or "Cancel." The change takes effect when ready for future payments, but if a payment has already been processed and sent to the recipient's bank, you cannot stop it — you will need to contact the recipient or your bank about a reversal.

Some recipients, like landlords or utility companies, may ask you to set up ACH payments directly with them instead of through your bank. This is called a direct debit or automatic payment arrangement. The process is similar, but the recipient's system initiates the payment rather than your bank. You still have the right to cancel, usually with written notice.

What to do if money goes to the wrong account

If you realize you sent an ACH payment to the wrong account, contact your bank when ready — the same day if possible. Your bank can file a reversal request with the recipient's bank, asking them to return the money. This works best if you catch the error within one business day.

The recipient's bank is not required to return the money, especially if the account holder has already spent it. However, most banks will attempt the reversal and may freeze the account temporarily while they investigate. If the reversal succeeds, the money returns to your account within a few business days.

If the reversal fails, you have limited options. You can try contacting the account holder directly and asking them to return the money, or you can file a dispute with your bank. Document everything — the date you sent the payment, the amount, the account number you used, and all communication with the bank and recipient. Your bank may be able to pursue the matter further, but recovery is not may provide.

Fees and limits for ACH payments

Most banks do not charge a fee for ACH payments, whether one-time or recurring. However, some banks limit the number of free ACH transfers per month — typically six to ten — and charge a small fee (usually one to three dollars) for each transfer beyond that. Check your account agreement or call your bank to learn your limits.

ACH payments also have daily and monthly limits. Your bank may cap the amount you can send in a single transaction (often $10,000 to $25,000) or per day. These limits vary widely and exist to prevent fraud. If you need to send more than your limit, contact your bank — they may be able to increase it temporarily or process the payment in multiple transactions.

Some recipients also set limits on how much they will accept via ACH. For example, a landlord might accept up to $5,000 per month but require a check or wire transfer for larger amounts. Confirm the recipient's limits before you set up the payment.

Frequently Asked Questions

Can I cancel an ACH payment after I submit it?

It depends on timing. If you cancel before your bank processes the payment, it will not go through. Once your bank has processed it and sent it into the ACH network, you cannot cancel it — you can only request a reversal from the recipient's bank, which they may or may not honor. Contact your bank as soon as you realize the mistake.

What if the recipient's bank account number is wrong by one digit?

The payment may go to a different account, bounce back to you, or be rejected by the recipient's bank. This is why verification is important — many banks send a small test deposit first so you can confirm the account exists and belongs to the right person. If you are unsure, ask the recipient to confirm the account number in writing.

Do I need to set up ACH payments separately for each recipient?

Yes. Each recipient requires their own setup in your bank's system. Once set up, you can make one-time or recurring payments to that recipient without repeating the setup process. You can store multiple recipients and switch between them.

Is ACH payment safer than sending a check?

ACH is generally safer because there is no physical check to lose or intercept. However, you must verify the recipient's bank details carefully — if you send money to the wrong account, recovery is harder than if a check is lost. Never share your bank account number with someone you do not trust.

Can I set up an ACH payment to a business that does not have a bank account?

No. ACH payments go only to bank accounts. If a business does not have a bank account, they cannot receive an ACH payment. Ask them what payment methods they do accept — they may take checks, credit cards, wire transfers, or other methods.