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The Top Payment Methods For Small Businesses

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An ACH transfer is an electronic movement of funds from one bank account to another via the ACH (automated clearing house) network, while a wire transfer uses a secure network like SWIFT (Society for Worldwide Interbank Financial Telecommunication) or Fedwire (Federal Reserve Wire Network) to initiate the movement of funds.

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ACH Payment vs Wire Transfer: What’s the Difference and Which Payment Method Should You Use?

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ODFI submits ACH file – The originator’s bank or payment processor, also known as the originating depository financial institution (ODFI) submits the ACH entry containing the payment details. After that, the bank uses various networks for the transfer depending on the type of wire transfer.