The ACH network batches and processes transfers between banks rather than moving money instantly, which is why it's slower than a wire but also far cheaper, typically a small flat fee or free, compared to a wire's cost of tens of dollars per transaction.

Most recurring business payments, payroll, vendor payments, subscription billing, run over ACH by default, reserving wires for time-sensitive or large transactions where the extra cost and speed are actually worth it.

Frequently Asked Questions

How is ACH different from a wire transfer?

A wire moves money nearly instantly and is generally irreversible once sent, at a higher per-transaction cost. ACH is slower (one to a few business days) and cheaper, and unlike a wire, an ACH debit can sometimes be reversed within a limited window if there's an error.

Why might a company choose a wire over ACH despite the higher cost?

Speed and certainty: a large real estate closing, an urgent vendor payment, or an international transaction often needs same-day, guaranteed settlement that ACH's multi-day batch processing can't provide.

What information does an ACH payment require?

The recipient's routing and account number, which is why this data lives in vendor master records and why changes to it carry the same fraud risk as any other bank-detail update.

Can an AI agent initiate ACH payments directly?

It can prepare and submit a payment file once an invoice has cleared matching and approval, though the actual authority to release funds is typically kept behind a separate control, consistent with segregation-of-duties practices under SOX and similar frameworks.