Which statement best describes ACH transfers compared with wire transfers?

Which statement best describes ACH transfers compared with wire transfers?

• A. ACH is an electronic funds transfer system for batch processing between banks, typically slower (hours/days) but lower cost
• B. ACH transfers are real-time or same-day, higher fees, more secure
• C. ACH transfers require physical checks
• D. ACH transfers are only domestic

Answer: (A)

ACH transfers move money through the Automated Clearing House network and are batch-processed. Payments are collected into groups and run at scheduled times, so settlement is typically slower—often hours to a day or more depending on cutoffs and whether same-day ACH is available. Because the process is batch-oriented rather than individual, costs are generally much lower than with wires. Wire transfers are usually handled one by one and can settle the same day or within a few hours, but this faster service comes with higher fees. While ACH is mainly domestic in the U.S., there are limited international ACH transactions as well. So, describing ACH as batch-processed, slower, and cheaper best captures how it compares with wire transfers.

ACH transfers move money through the Automated Clearing House network and are batch-processed. Payments are collected into groups and run at scheduled times, so settlement is typically slower—often hours to a day or more depending on cutoffs and whether same-day ACH is available. Because the process is batch-oriented rather than individual, costs are generally much lower than with wires. Wire transfers are usually handled one by one and can settle the same day or within a few hours, but this faster service comes with higher fees. While ACH is mainly domestic in the U.S., there are limited international ACH transactions as well. So, describing ACH as batch-processed, slower, and cheaper best captures how it compares with wire transfers.