How to Make an ACH Payment From Your Bank Account

What an ACH payment is and when you'll use it

An ACH payment is a transfer of money from your bank account to another bank account, processed through the Automated Clearing House network. It's the system behind direct deposit, bill pay, and payments to contractors or service providers. When you pay a mortgage, property tax bill, or homeowners insurance premium by routing money straight from your checking account, you're making an ACH payment.

ACH transfers are slower than wire transfers — they typically take one to three business days — but they cost nothing or very little. Most banks offer ACH payments free through their bill pay service. You'll use ACH when you need to move money between accounts at different banks, pay a bill to a company that accepts bank transfers, or send money to a contractor or service provider who has given you their banking details.

Key Takeaways

• ACH payments move money from your bank account to another account and take one to three business days to clear.
• You can set up an ACH payment through your bank's website or app, by phone, or by mailing a form — most banks offer it free through bill pay.
• You'll need the recipient's bank name, account number, and routing number, or you can use a bill pay payee if the company is already in your bank's system.
• ACH payments are safer than mailing checks or giving out credit card numbers, but you should verify the recipient's details before sending money.
• If you make a mistake or need to stop a payment, contact your bank immediately — ACH transfers cannot always be reversed once they've been sent.

How to set up an ACH payment through your bank

Log into your bank's website or mobile app and look for "Bill Pay," "Send Money," or "Transfer Funds." Most banks group ACH payments under one of these labels. Select the option to add a new payee or recipient. You'll enter either the company name (if you're paying a bill) or the person's name (if you're sending money to an individual).

Enter the recipient's bank routing number and account number. The routing number is a nine-digit code that identifies the bank; the account number is the specific account at that bank. If you're paying a known company — your mortgage lender, insurance company, or utility — your bank may already have them in the system, and you can just select them from a list. For individuals or smaller businesses, you'll need to enter the details manually.

Enter the amount and the date you want the payment sent. You can schedule it for today, a future date, or set it to repeat monthly. Review all the details, then confirm. Your bank will send the payment through the ACH network, and it will arrive at the recipient's bank in one to three business days.

Getting the information you need from the recipient

Before you can send an ACH payment, you need the recipient's routing number and account number. If you're paying a company, call their billing department or check your bill — many include this information. If you're paying an individual or contractor, ask them directly for their banking details.

The routing number is usually printed on the bottom left of a check, or the recipient can get it from their bank's website or by calling customer service. The account number is on the check as well, or they can find it in their online banking. Some people prefer to provide this information in person or over the phone rather than by email, so respect their preference.

Verify the details before you send the payment. A single wrong digit in the account or routing number can send your money to the wrong account, and recovering it can be difficult. If you're unsure, ask the recipient to confirm the numbers or provide a voided check.

ACH payments versus other payment methods

ACH transfers are slower than wire transfers but much cheaper — wires often cost $15 to $30 per transaction, while ACH is usually free. Wires arrive the same day or next business day; ACH takes one to three days. Use a wire transfer only when you need money to arrive urgently, such as for a time-sensitive real estate closing.

ACH is safer than mailing a check, which can be lost or stolen. It's also safer than giving out a credit card number, which carries fraud risk. ACH does require you to share your bank account number, but the recipient can only withdraw money — they cannot see your balance or access other accounts. If fraud does occur, your bank's dispute process can recover the money, though it may take time.

For one-time payments to individuals or contractors, ACH is usually the best choice. For recurring bills, many companies offer automatic ACH withdrawal directly from your account, which is even more convenient than setting up a payment each month.

What to do if you make a mistake or need to cancel

If you realize you've entered the wrong amount or recipient before the payment is sent, log back into your bank and cancel it immediately. Most banks allow you to cancel a scheduled payment up until a certain time on the day it's supposed to be sent — often 5 p.m. or later, depending on the bank.

Once an ACH payment has been sent and is in the clearing process, you cannot cancel it directly. Contact your bank right away and ask them to attempt a recall. The bank can request that the recipient's bank return the funds, but the recipient's bank is not required to comply. If the money has already been deposited and spent, recovery becomes much harder and may require legal action.

If the payment was sent to the wrong account due to an error in the routing or account number, contact your bank immediately. Provide them with the incorrect details and ask them to work with the other bank to recover the funds. Document everything in writing and keep records of all communications.

ACH payment limits and timing

Most banks set daily and monthly limits on ACH transfers to protect against fraud. A typical limit might be $10,000 per day or $25,000 per month, though this varies by bank and account type. If you need to send more than your limit, contact your bank to request a temporary increase or to arrange a wire transfer instead.

ACH payments take one to three business days to clear. This means weekends and bank holidays add time — a payment sent on Friday may not arrive until Tuesday. If you're paying a bill with a due date, send the payment several days early to account for processing time. Some companies allow you to set up automatic ACH withdrawal on a specific day each month, which removes the guesswork.

Security and fraud protection for ACH payments

ACH payments are generally safe, but you should take steps to protect yourself. Never share your bank account number with someone you don't trust. If a contractor or service provider asks for your account details, verify that they're legitimate before providing it. Scammers sometimes pose as contractors or service providers to collect banking information.

Use your bank's bill pay feature whenever possible, because your bank verifies the recipient before sending the payment. If you must send money to an individual, confirm their identity by phone or in person before providing banking details. Keep records of all ACH payments, including the date, amount, recipient, and confirmation number from your bank.

If you notice an unauthorized ACH withdrawal from your account, contact your bank immediately. Under federal law, your bank must investigate and may be required to return the funds while the investigation is underway. Report the fraud in writing and keep copies of all correspondence.

Frequently Asked Questions

How long does an ACH payment actually take?

ACH payments typically take one to three business days from the time your bank sends them. Weekends and bank holidays don't count as business days, so a payment sent on Friday may not arrive until Tuesday. Some banks offer next-day ACH for an extra fee, but standard ACH is free and takes the full one to three days.

Can I cancel an ACH payment after I've sent it?

If the payment hasn't been sent yet, you can cancel it through your bank's website or app. Once it's been sent and is in the clearing process, you cannot cancel it directly. Contact your bank immediately and ask them to attempt a recall, but the recipient's bank is not required to return the funds.

What's the difference between ACH and a wire transfer?

Wire transfers arrive the same day or next business day and cost $15 to $30, while ACH transfers take one to three days and are usually free. Use a wire transfer only when you need money urgently. For routine bills and payments, ACH is the better choice.

Do I need the recipient's name to send an ACH payment?

Yes, you'll need the recipient's name, routing number, and account number. The ACH system uses the account number to route the money, but the name helps verify you're sending it to the right person. If the name on the account doesn't match the name you enter, some banks will flag it for review.

Is it safe to give someone my bank account number for an ACH payment?

It's relatively safe because the recipient can only withdraw money — they cannot see your balance or access other accounts. However, only share your account number with people and companies you trust. If you're unsure about a recipient, use your bank's bill pay feature instead, which doesn't require you to share your account number directly.