Is your dire need for a feasible money transfer option confusing you between wire transfer and ACH transfer?
Millions of people migrate to other countries yearly, searching for better livelihood. They support their families back at home through their foreign earnings when they send money online to their native countries. Apart from that, many people have vacation homes or possess dual nationalities that put some monetary obligations on them to take care of in the foreign country. These obligations might include taxes, utilities, or mortgages. Hence, a need for international money transfers arises. Two commonly used traditional methods are wire transfer and ACH for international money transfers.
What is a wire transfer?
A wire transfer is a traditional method of moving funds electronically between two banks. A bank can initiate a wire transfer after providing some essential information, including the recipient’s name, bank account, address, etc.
What is ACH transfer?
The ACH Network is a financial centre that enables individuals and businesses to transfer funds from one bank account to another. The ACH payment system mainly supports the following types.
- The first type is credit transferring which includes the non-immediate transfer of funds amongst accounts at banks and other financial institutions for retail consumer payments and non-urgent business-to-business payments.
- Consumer payments such as mortgages, rents, utilities, loans, insurance premiums, and any other periodic payment can be paid via direct debit. This option is more suitable for businesses that collect regular payments from returning customers.
The difference in transfer speed of ACH payments and wire transfer
ACH is a lengthier process. It would require around 2 to 4 processing days in case of international funds transfer. Whenever you have to choose an ACH vendor, keep in mind the processing time needed for you to receive or send payments. Tracking cash flow must be one of your top priorities as a business owner.
Wire transfers take less time than ACH. The only downside is that they are very costly. You must only prioritise this electronic payment option when you require a quicker method than ACH.
Security comparison between ACH and wire transfer
A deeper analysis of the security comparison between ACH and wire transfers suggests that ACH transactions edge out wire transfers in this domain. Usually, both methods are trustworthy, but ACH passes through clearinghouses and becomes a safer option. Each transaction made through ACH is subject to more scrutiny and regulations.
ACH transfers can be easily reversed in case of a mistake or fraudulent transaction. Wire transfers cannot be returned after initiation.
If you make a money transfer online from the country of your residence to your family back home, you’ll have several benefits like swift and secure transactions, the lowest transfer costs, and the best exchange rates. ACE Money Transfer is one of the leading service providers where you can have all of these benefits along with various promotions to win exciting rewards.
Costs related to sending and receiving money through ACH and wire transfer
Banks would quickly charge you 4 to 5 per cent of your transferred amount when opting for a wire transfer. This estimate is associated with national transfers. International money transfer would cost much more. Receiving the wire transfer is often free. However, some banks or credit unions might charge a small amount as receiving fee.
Meanwhile, ACH transfers have meagre costs associated with them. Transaction charges are usually less than £1. There are no receiving costs either.
How can Modern Digital Remittance Systems be a better choice?
Technological revolutions have paved the way for digital systems that provide more convenience and ease than traditional international money transfer methods. Online money transfer is a more advanced, fast, and secure method than wire and ACH transfer. More and more people are switching to online money transfers daily to send remittances to their loved ones.
ACE Money Transfer to the rescue
Leave behind the conventional time-taking money transfer methods and switch to ACE. ACE Money Transfer has been the leading remittance sending company with a massive family of users in the past two decades. It has proven the cheapest way to transfer money internationally with unbeatable exchange rates and no hidden charges. Switch to ACE and experience the convenience of the digital world and online money transfer.