What you need before you start
Every ACH payment needs four details about the account you are paying.
| Detail | Notes |
|---|---|
| Name on the account | Exactly as the bank has it |
| Routing number | 9 digits. Use the bank’s ACH routing number, not its wire number |
| Account number | Up to 17 characters |
| Account type | Checking or savings |
Ask the person you are paying to give you these in writing. A phone call or a photo of a check invites copying mistakes. Our guide to the information needed for an ACH payment explains each one.
How a person sends an ACH payment
The Consumer Financial Protection Bureau lists online payment services and bill payment services through banks and credit unions among the common uses of ACH. For a person, that usually means one of three things.
- Pay a bill through your bank’s bill pay. You add the company as a payee and choose an amount and a date.
- Move money to another account from your bank’s website or app. You add the other account’s routing and account numbers.
- Let a company pull the payment. You give the company your details and a signed authorization, and it collects on the agreed date. This is an ACH debit.
The steps on screen differ from bank to bank. The pattern does not:
- Add the receiving account’s details.
- Confirm the account, if your bank asks. Some banks send small test deposits first.
- Enter the amount and the date.
- Check everything, then submit before the cut-off time.
- Save the confirmation.
ACH vs bill pay
Bill pay is a service your bank offers. ACH is a network. They are not the same thing, but a bill payment can travel by ACH.
- By ACH. The ACH rules have a payment type for it, called CIE: a credit that a consumer starts through a bill payment service to pay a bill.
- By paper check. Not every bill payment is electronic. U.S. Bank, for example, says most scheduled bill payments are sent electronically, and that some may be sent as paper checks when the amount is above its limit for electronic payments or the company does not accept electronic payments.
The timing differs too. U.S. Bank says that for an electronic payment the money is taken from your account on the payment date, and that for a paper check it is taken when the biller processes the payment. We checked its page on October 2, 2026. It is one bank’s example, and the page does not say which network carries the electronic payments.
If it matters how a bill is paid, ask your bank how it will send that payment and when the money will leave your account.
How a business sends ACH payments
A business has three routes. All of them end at a bank, because only a bank can put a payment into the ACH Network.
| Route | How it works | Suits |
|---|---|---|
| Your bank’s ACH service | You key in payments or use templates in the bank’s business portal | Regular payments to a steady list of payees |
| Payment or payroll software | The tool sends the payments for you as a third party | Paying bills and staff with little setup |
| A NACHA file | Your accounting system makes a file and you upload it to the bank | Larger batches, and banks that ask for a file |
Nacha lists the common business uses: paying vendors, moving money between your own accounts, and funding payroll.
Step 1. Set up the service
With a bank, you sign an ACH origination agreement. Nacha says this agreement binds the business to the Nacha rules. The bank gives you a company ID and tells you its limits and cut-off times. See ACH company ID.
With software, you sign up, connect your bank account and verify it.
Step 2. Collect the payee’s details on a form
Use a signed form, not an email. A vendor ACH form collects the supplier’s bank details and a contact for payment notices. For staff, use a direct deposit form.
Step 3. Confirm the details
A common scam starts with a fake “we have changed our bank” message. Nacha’s advice is to double-check by calling the person directly on a number you already know.
Then check the numbers.
- Test the routing number with the routing number checker.
- Send a prenote, a zero-dollar test entry, if your bank offers it.
Step 4. Choose the date and speed
The effective date is the date you want the payment to happen. A credit can be dated up to two banking days ahead.
| You want the money to arrive | Do this |
|---|---|
| Today | Send as Same Day ACH before your bank’s same-day cut-off. Limit $1 million per payment ($10 million from September 17, 2027) |
| Tomorrow | Send today before the cut-off |
| On payday | Send by the deadline your bank or payroll provider gives you. A credit can be dated up to two banking days ahead |
See how long an ACH transfer takes.
Step 5. Describe the payment
Each batch has a short description that shows on the receiver’s statement. Since March 20, 2026, a batch that pays wages or salaries must use the description PAYROLL.
For supplier payments, tell the vendor what you paid. Send a payment notice by email listing the invoice numbers.
Step 6. Send it and keep the record
Submit the payment or upload the file. Save the confirmation and the trace numbers. If a payment goes missing, a bank can find it by its trace number.
Step 7. Watch for returns and corrections
- A return means the payment failed. It comes with a code such as R03, no account found. Fix the details before sending again. See ACH return codes.
- A notification of change means the payment went through, but the bank is telling you to update a detail for next time. See NOC codes.
Sending a NACHA file
A NACHA file is a plain text file in which every line is 94 characters long. Banks may add their own formatting requirements, so ask for your bank’s file specification first.
- Make a test file with the NACHA file generator.
- Check any file with the NACHA file validator before you upload it.
- Learn the layout in the NACHA file format guide.
Both tools run in your browser. The file is not uploaded to us.
What it costs
Published prices, checked on October 2, 2026. They are examples, not rules.
| Provider | Price to send a standard ACH payment |
|---|---|
| Melio | $0.50 after a monthly free allowance |
| BILL | $0.59 |
| Chase Business ACH Payments | $2.50 each for the first 10 a month, then $0.15 |
Faster options cost more. Melio lists same-day ACH at 1%, up to $75.
If you sent a payment by mistake
Act the same day.
- Not yet sent on by your bank. Ask the bank whether it can still be stopped.
- Already sent. A business can send a reversal. It must reach the receiving bank within five banking days of settlement, and it is allowed only to fix a mistake, such as a duplicate, a wrong receiver, a wrong amount, or a credit dated later than you intended. You must tell the receiver about the reversal. See ACH reversals.
- Sent to the wrong account as a person. Contact your bank at once. For a direct deposit that went astray, Nacha says to contact the company that sent it, because it is in the best position to find the payment.
A reversal is not guaranteed. If the money has gone, the reversal comes back unpaid.
Common mistakes
- Typing details from an email. Confirm by phone, on a number you already had.
- Using the wire routing number. Some banks have a separate one for ACH.
- Missing the cut-off. The payment starts a day late.
- Paying staff on the pay date. Send early enough for the money to settle on payday.
- Ignoring a notification of change. Update the record before the next payment.
- Sending a first payment to new details for the full amount. Test with a prenote or a small payment first.