When you move money between bank accounts in the United States, you usually have a choice between two electronic networks: ACH and wire transfer. They use different rails, settle on different schedules, and cost very different amounts. Understanding when to use each one will save you both time and money.
ACH stands for Automated Clearing House. It is the network that handles direct deposit of paychecks, recurring bill payments, electronic tax refunds, person-to-person transfers from apps like Venmo and Zelle, and routine transfers between accounts at different banks. ACH transfers are batched and settled by the Federal Reserve in scheduled windows throughout the day. They are inexpensive — usually free for the consumer — and reversible if there is an error.
A wire transfer is a real-time electronic payment between two banks, settled individually rather than batched. Domestic wires in the US run on the Federal Reserve's Fedwire network or the privately operated CHIPS network. They are fast (usually completed within hours, often within minutes) and final — once a wire is sent and accepted by the receiving bank, it cannot be reversed without the cooperation of the recipient.
ACH: Standard ACH takes 1–3 business days. Same-day ACH is available for some transactions and settles within hours, but only during weekday business hours.
Wire: Domestic wires settle within hours, often within 30 minutes during business hours. Wires sent late in the day or on weekends usually process the next business day.
ACH: Free for the consumer in almost all cases. Banks pay a fraction of a cent per ACH transaction to the Federal Reserve.
Wire: Domestic wires typically cost $15–$30 to send and $0–$15 to receive, depending on the institution. International wires are usually $30–$75 outbound. Many credit unions charge less than commercial banks.
ACH: Reversible within 60 days for unauthorized transactions; 5 business days for routine errors.
Wire: Effectively final. The sending bank can request a recall, but the receiving bank is not required to return the funds.
Most US credit unions use the same nine-digit ABA routing number for both ACH transfers and domestic wire transfers. A few maintain a separate wire routing number, especially larger institutions. If your wire is rejected after using the routing number listed for ACH, contact your credit union and ask whether a different number applies for wires. The detail page for each credit union on RoutingHub lists every routing number registered to the institution.
Because wires are essentially irreversible, they are the favorite tool of impersonation scammers. If you receive an urgent email instructing you to wire funds — especially if it claims to be from a real-estate agent, attorney, or executive — call the alleged sender at a phone number you already know is theirs (not one in the email) before sending anything. The FBI's Internet Crime Complaint Center logs billions of dollars in wire-fraud losses every year.