fbpx

ACH vs. Credit vs. EFT vs. Wire Transfer: Which Should You Use?

ACH (Automated Clearing House), Credit, EFT (Electronic Funds Transfer), and Wire Transfer are all methods for transferring funds between accounts, but they differ in terms of cost, speed, and security.

ACH is a type of EFT that is commonly used for recurring payments, such as payroll, mortgage payments, and utility bills. It is a low-cost option, but it can take a few days for the funds to transfer.

Credit transfers are another form of EFT that is commonly used for one-time payments, such as sending money to a friend or family member. They are typically faster than ACH transfers, but they can also be more expensive.

Wire transfers are a type of EFT that is typically used for high-value or urgent transactions. They are the fastest option, but they can also be the most expensive, with fees ranging from $20 to $50 or more.

Ultimately, the choice of which method to use depends on the specific circumstances of the transaction. For routine or recurring payments, ACH is often the best choice due to its low cost. For one-time payments, credit transfers are a good option, while wire transfers are best for urgent or high-value transactions.