What is the difference between ACH and EFT?

Share your love

I am going to explain the blog post “What is the difference between ACH and EFT?“.

As online banking and electronic payment options become increasingly popular, it can be challenging to keep track of all the acronyms and terms associated with different payment methods. Two such terms are ACH and EFT. While they may seem similar at first glance, there are some important differences between the two. In this blog post, we’ll explore what ACH and EFT are, and the differences between them.

Check also: Water Intake Calculator

10 Differences between ACH and EFT

Here is a list of 10 differences between ACH and EFT

  1. Definitions: ACH stands for Automated Clearing House, which is a U.S. network that facilitates electronic transactions, including direct deposits, payroll, and bill payments. EFT stands for Electronic Funds Transfer, which is a more general term that refers to the transfer of funds electronically, including wire transfers and debit card transactions.
  2. Authorization process: ACH transactions require the recipient to have authorization from the payer, either through written consent or online agreement. EFT transactions can be authorized in several ways, such as a signature on a paper check or through an online portal.
  3. Processing speed: ACH transactions typically take 2-3 business days to process, while EFT transactions can be completed within hours or even minutes, depending on the financial institution.
  4. Fees: ACH transactions are typically less expensive than EFT transactions, with fees ranging from a few cents to a few dollars per transaction. EFT fees can be higher, especially for wire transfers or international transactions.
  5. Payment types: ACH transactions are typically used for recurring payments, such as direct deposits or automatic bill payments. EFT transactions can be used for a wider range of payment types, including one-time purchases or larger transactions.
  6. Account requirements: ACH transactions can be processed using only a checking account, while EFT transactions may require a credit or debit card, in addition to a checking account.
  7. Transaction limits: ACH transactions have a limit of $25,000 per transaction, while EFT transactions can have higher limits, depending on the financial institution.
  8. Security: Both ACH and EFT transactions are generally considered secure, but ACH transactions are subject to stricter regulations and protocols for data security and fraud prevention.
  9. Reversal process: ACH transactions can be reversed within a certain time frame, typically within 24-48 hours of the transaction. EFT transactions may have a more complex reversal process, depending on the financial institution and the type of transaction.
  10. Availability: ACH transactions are available only in the United States, while EFT transactions can be used internationally, although fees and transaction times may vary depending on the country and financial institution.

By understanding these differences, you can make an informed decision about which electronic payment option is right for you. Whether you need to make recurring payments or one-time purchases, ACH and EFT offer convenient and secure options for transferring funds electronically.

Get free worksheets


In conclusion, while both ACH and EFT are electronic payment options that offer convenience and efficiency, there are some significant differences between the two. By understanding these differences, you can make an informed decision about which payment method is right for you. Whether you’re a business owner looking to streamline your payment processes, or an individual looking for a fast and secure way to transfer funds, ACH and EFT are both valuable tools to consider.

If you really enjoyed the article “What is the difference between ACH and EFT?,” then I would be very grateful if you’d help it spread by emailing it to your friends or sharing it on Twitter, Instagram, or Facebook. Thank you!

Have you read “What is the difference between ACH and EFT? Which of these blogs are you reading, and how is it similar to one of them?

Read More

Share your love

Leave a Reply

Your email address will not be published. Required fields are marked *