ACH vs. wire transfer: which is better?

Hot Question
1

Hey Everyone,

I’ve noticed that a lot of people tend to use ACH and wire transfers interchangeably since they both serve the same purpose. But I’m curious about one thing: Which one is faster?

I’m only interested in speed, so here’s where it gets a bit tricky. Wire transfers are straightforward; there’s just one type. But with ACH, you have regular ACH and same-day ACH (which usually costs extra).

So, my question is: Is a wire transfer faster than regular ACH? Is it faster than same-day ACH? Or is it that a wire transfer is quicker than regular ACH, but same-day ACH is the fastest option overall?

Apologies if this sounds a bit confusing; I’m still trying to wrap my head around it myself.

2

Although wire transfers are instantaneous, they are frequently handled manually on both the sending and receiving ends, which takes time. This is because the response is contingent upon the participating banks.

When sending an ACH payment, it often posts the following day.

The banks are simply trying to charge you more money for transmitting an ACH payment over a different, real-time channel by offering same-day ACH.