How To Make An ACH Payment

Here, we gave a detailed guide on how to make ACH payments easily.

How To Make An ACH Payment
How To Make An ACH Payment

Every year, billions of people use ACH transfers to complete their payments. Essentially, this kind of electronic payment is fast becoming popular because of its security and low cost. In fact, Automated Clearing House payments are regarded as one of the safest forms of payment.  If you want to set up a bill payment or send money to someone and you are considering using this method of payment, this article is for you. Here's a detailed guide on how to make an ACH payment in no time.  

What is an ACH Transfer?

You can’t fully understand how to make an ACH payment without learning what ACH payment means. Let’s explain what this form of payment means first. An ACH transfer or payment is the electronic transfer of cash between different banks via the Automated Clearing House network. This form of payment is primarily governed by the Nacha (National Automated Clearing House Association).

Some common ACH payments include person-to-person payments, external funds transfers, bill payments, as well as direct deposits from your employers and other government benefit programs. Also, business-to-business payments can be done via ACH transfers. They are considered one of the cheapest and most secure forms of electronic payment.

What Are the Types of ACH Transfers?

There are primarily two different types of ACH transfers that are currently available. They include:

1. ACH credit transfers

This type of ACH transfer allows you to push or send money electronically to numerous accounts at different banks. You can decide to use the ACH credit transfer to send money to your own account or any other account belonging to your friends, family members, or business partners.

2. ACH debit transfers

ACH debit transfers primarily involve cash getting pulled or deducted from a person's account. For instance, when you initiate a recurring payment for your bill, it can be called an ACH debit transfer. In this case, the company you want to pay can deduct the specific amount you owe from your account every month.  

Related Article - ACH vs. Wire Transfers: What’s the Difference?

How To Make An ACH Payment: A Step-by-Step Guide

Here, we’ve provided a guide on how to make an ACH payment:

Step 1: Get all the necessary information from your recipient

To make an ACH payment, you must provide your bank with the relevant details of your recipient. Here is a list of the information your bank expects you to provide to initiate the payment:

Step 2: Sign into your online banking account

If your bank/credit union supports the ACH payment option, you can log into your online banking and start initiating the payment process.

Once you log into your bank account, navigate to the payments area and select if you would like to make an ACH debit or credit transfer. Once you choose your preferred option, move to the next step.

Step 3: Enter the details of your transaction

Follow the prompts you see on your screen to input all the details of your payment. This includes the receiver’s bank information and the amount of money to be sent. Ensure that whatever information you provide is accurate.

Step 4: Cross-check all your details and confirm the transaction

Cross-checking your previous details is one major step that must not be skipped. Once you do this, you can go ahead to complete all your bank's security checks and confirm your payment when you are ready.

Recommended - Electronic Funds Transfer Advantages and Disadvantages

What Information is Required to Make an ACH Transfer?

To make an ACH transfer, you have to gather certain information about your receiver, including:

  • Their name and address
  • Their bank account number
  • Their bank routing and ABA number

You may also need to provide extra information about the recipient like their bank branch address. It all depends on your own bank’s process, as it can be different from other banks.

How Long Do ACH Transfers Take?

Generally, ACH Credit payments or transfers can be instantly processed on the same day you initiate them or just in one or two working days. It depends on the bank or financial institution you use to execute the transaction.

As for ACH Debit payments, they must be processed the following day. However, it generally takes about 3 - 4 days for them to get cleared in the payee's bank account. Since ACH transactions are sent in batches, the specific time of day the transaction is made can impact how long it takes.


Learning how to make an ACH payment is pretty straightforward. Once you gather the information you need for the process, you’ve done the major work. Just log into your online account and initiate the ACH payment. If you encounter any difficulty while initiating the payment, contact your bank’s customer service to help you out with it.  

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