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ACH Routing Number - Everything to Know

ACH Routing Number - Everything to Know

21 Jun 2022


Automated Clearing House or ACH is a popular payment transfer method that millions of people use worldwide. The ACH Network has seen a record hike of 7.3 billion in 2022’s first quarter. Like many other payment methods, ACH also requires the customers to have specific credentials such as a routing number to make the process secure and smooth. If you are uncertain about what is a routing number and how to get one for your international money transfer, keep reading to find the guidance. 

What is ACH Payment Method?

ACH is the electronic money transfer system that allows people to receive or send money through the Federal ACH network. Customers can transfer funds across borders from one bank account to another using the ACH payment method that doesn’t require cash, wire transfers, paper checks, or credit card networks.

How to Find the ACH Routing Number?

Finding your ACH routing number isn’t a catch-22. It’s a nine-digit code usually found on your chequebook printed on the left of your account number. Yet, if you can’t find it, you don’t need to worry as you have other simple methods of finding your ACH routing number.

You may visit your bank’s official website to find the desired ACH routing number since almost every bank allows customers to find these codes through the website.

You may also contact customer support or visit the bank branch to get assistance from the bank’s representative in locating your ACH routing number. 

What is the difference between ABA and ACH?

An ABA number is a bank routing number that identifies the banks. People often consider ABA and ACH routing numbers the same since most banks will utilise the same code for the ABA and ACH routing numbers. However, there’s a difference between the two which you must understand before making international money transfers.

An ABA routing number is used for transactions such as direct deposits, bill payments, wire transfers, paper checks, etc. In contrast, an ACH routing number is required to make electronic funds transfers from one bank account to another. 

You must remember that if you choose to send money internationally using the ACH payment method, you will need to produce your ACH routing number to process the transfers.

How do ACH payments work?

The ACH payment is a kind of electronic bank-to-bank payment. It is made through the ACH network rather than going into the card networks such as MasterCard or Visa.

The ACH network used for moving money electronically between bank accounts is run by an organisation named Nacha.

What are the benefits of using the ACH Payment Method?

Every payment method has its unique features which attract the customers. Electronic and online money transfers are the most convenient methods which save you from several problems. For those willing to choose the ACH payment method, here are some of its benefits:

-Low cost: Since the ACH payment isn’t routed through the relatively expensive card networks, it is relatively cheaper to transfer funds using this method.

– High retention: Credit and debit cards tend to expire, leading to involuntary churn. With the ACH payment, a bank account is the primary source of funds, and the risk of involuntary churns is reduced manifolds.

– Open to anyone: Anyone with a bank account can make payment through the ACH scheme. It includes the business and consumers alike.

 

One main disadvantage of making money transfers via the ACH routing number method is that it’s not as instant as you expect. 

Knowing completely about the ACH payment method and routing number will guide you in deciding whether you should use the ACH routing number or move to the online money transfer methods. The easier you make online transactions for your loved ones, the quicker they will receive funds.

If you are looking for a payment transfer method that offers the quickest, most secure and most reliable service, choose ACE Money Transfer’s online remittance solutions. You will get competitive exchange rates, the lowest transfer fees, completely secure transactions, and serviceability in more than 100 countries across the UK, Europe, Canada, Australia, Switzerland, and several other parts of the world.



 


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