The four details every ACH payment needs
| Detail | What it is | Where to find it |
|---|---|---|
| Name on the account | The person or business that owns the account | Your bank statement |
| Routing number | 9 digits that identify the bank | Bottom left of a check, or your bank’s app |
| Account number | The number of the account at that bank | To the right of the routing number on a check, or your bank’s app |
| Account type | Checking or savings | Your bank statement or app |
Some people call the routing number an “ACH number”. See what an ACH number is.
The account type is not optional. The payment carries a transaction code that says whether it is a debit or a credit and whether it is going to a checking or a savings account. With the wrong type, the payment can be returned, or the bank sends a correction notice.
What the sender adds
When a business sends an ACH payment, its file also carries details about the business itself. If you pay through online banking or a payment service, the bank or service fills these in for you.
| Detail | What it is |
|---|---|
| Company name | The name the receiver sees on their statement, up to 16 characters |
| Company ID | A 10-character ID assigned by the sender’s bank |
| SEC code | The type of payment, such as PPD for a person or CCD for a business |
| Entry description | Up to 10 characters saying what the payment is for, such as PAYROLL or RENT |
| Effective date | The banking day the payment should settle |
| Amount | In dollars and cents |
To collect money from someone else’s account, you need one more thing: their authorization. See the ACH authorization form.
What you need in each situation
| You want to | You need |
|---|---|
| Be paid by a client | Give the client your four details. Use an ACH information form |
| Pay a vendor | Get the vendor’s four details on a vendor ACH form |
| Pay an employee by direct deposit | Get the employee’s four details on a direct deposit form |
| Collect payments from a customer | The customer’s four details and a signed authorization |
| Move money between your own accounts | The four details of the other account, entered in your bank’s transfer screen |
Check the details before you use them
A wrong digit can send a payment back, and it is a mistake you can prevent.
- Check the routing number. The routing number checker tests the 9 digits against the bank checksum. It catches typing mistakes.
- Read the account number back. There is no checksum for account numbers, so compare it with a voided check or a bank letter.
- Use the ACH routing number. Some banks have a different number for wires, and a different one printed on paper checks in some states.
- Confirm changes by phone. If someone emails you new bank details, call a number you already have for them before you pay. Fraudsters send fake “our bank details have changed” messages.
If the details are wrong, the payment comes back with a return code. R03 means no account was found, and R04 means the account number is not in a valid format.
Is it safe to share ACH details?
Your routing and account numbers are printed on every check you write, so sharing them to be paid is normal. Still, treat them with care.
- Share them only with people and companies you mean to deal with.
- Prefer a form handed over in person, a secure upload link or a password-protected file to plain email.
- Check your statements. If a company you do not know takes money from your personal account, tell your bank as soon as you see it, and no later than 60 days after the statement that shows it. If the 60 days have passed, tell your bank anyway. See how to stop an unauthorized ACH withdrawal.
More on what protects you is in is ACH safe?
Common mistakes
- Giving the debit card number in place of the account number.
- Leaving out the account type.
- Dropping a leading zero from the routing number in a spreadsheet.
- Using a nickname. Use the name exactly as the bank has it.