Eft Ach

What's The Difference Between ACH, EFT & Wire...

New postby Kecia » 26 Oct 2012, 20:52

What's the difference between ACH, EFT & Wire Transfer payments?

I do minimal work with accounts receivable, and oft get confused (and really dislike consulting the boss who will look at me like I have fourteen heads).

When clients want to pay via EFT (electronic funds transfer) I understand that. Our company has two methods of transfer that they permit me to use:

ACH (automated clearing house) or Wire Transfer.

What is the difference between all of these?
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New postby Hayden » 26 Oct 2012, 20:52

ACH is automatic clearing house. This is used mostly when people get direct deposit into their checking/savings account from their employer when they get paid. There is no fee to receive direct deposit. Wire Transfer on the other hand is a bank to bank transfer using the Federal Reserve System. Both the sending bank and receiving bank will charge fees for this service. EFT is just another was of saying ACH where funds are automaticall pulled from your account.- Mostly this is used when paying a bill over the phone.
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Are EFT and ACH the same thing?

New postby Jefferey » 26 Oct 2012, 20:52

I am trying to determine if EFT and ACH are the same product. I understand the difference between ACH and Wires but it seems that EFT and ACH are referred to as being the same thing by some sites but as different things on other sites.
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New postby Anjanette » 26 Oct 2012, 20:53

They're pretty close. Technically, ACH (Automated Clearing House) is a FORM of EFT (Electronic Funds Transfer).
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