ACH Payment Details (What You Need to Send or Receive Money)

What an ACH payment does

To make an ACH payment, you usually need the recipient’s bank routing number, account number, account type, and the amount. You may also need the account holder’s name and a payment date. Businesses that collect payments must get the customer’s authorization before debiting an account.

ACH stands for Automated Clearing House. It is a U.S. network that moves electronic payments between bank accounts. Payroll, bill pay, and many bank-to-bank transfers use this network. ACH is one type of electronic funds transfer, or EFT.

The bank details depend on the payment. A transfer you send may need the recipient’s account data. A business that pulls funds from a customer also needs permission to debit that account. Get the details right before submitting the payment.

Information you need for an ACH payment

The exact ACH payment information varies by bank and payment service. For a typical U.S. payment, gather the details below. Check each field with the recipient or account holder before you send money.

• Routing number: This nine-digit number identifies the bank or credit union. A bank may use different routing numbers for wire and ACH payments.
• Bank account number: This identifies the specific checking or savings account. Account numbers vary in length, so enter all digits shown by the bank.
• Account type: Choose checking or savings if the form asks. Do not guess when you are unsure.
• Account holder’s name: Enter the name linked to the account, especially for business or payroll payments.
• Payment amount and date: Confirm the amount and when the payment should start processing.
• Payment purpose or reference: Some forms ask for an invoice number, memo, or other note to help match the payment.

For personal payments, you typically need the recipient’s routing and account numbers, plus the amount. Some banks let you send money by using a linked account or a service that verifies bank details. The recipient may need to share their account type or name as well.

For a business debit, bank details alone are not enough. The business must obtain signed authorization from the customer. The authorization should show the amount or payment terms, how often the debit will occur, and how the customer can cancel it. Keep a record of that approval.

How to start an ACH payment

Start by confirming what kind of payment you are making. Sending money to a worker or supplier is different from collecting a bill from a customer. The payment direction determines whether the ACH entry is a credit or a debit.

1. Confirm the recipient. Verify the account holder’s name and payment details through a trusted channel.
2. Collect the bank details. Get the routing number, account number, and account type. Ask the bank or recipient which routing number to use for ACH.
3. Get approval when you debit funds. Ask the customer to sign an authorization before setting up recurring or one-time debits.
4. Enter the payment. Add the amount, date, and any reference details in your bank or payment service.
5. Check the entry before sending. Review each digit and confirm the amount and date. A wrong account number can delay payment or send it to the wrong account.
6. Track the result. Watch for a confirmation, return notice, or request to fix account details.

Many banks offer account checks before a first payment. These may include small test deposits or a sign-in step with the customer’s bank. Such checks help confirm that the account exists and belongs to the person who gave you the details.

ACH processing often takes one to three business days. Same-day ACH is available for eligible payments, but cut-off times and limits can apply. The Federal Reserve’s ACH overview explains the network and its role in moving payments.

ACH credits and debits: the two main types

ACH payments fall into two main groups: credits and debits. A credit sends money into a recipient’s account. A debit pulls money from an account after the account holder has given permission.

ACH type	What happens	Common examples
Direct deposit, or credit	Funds move into the receiver’s bank account	Employer payroll, tax refunds, and government benefits
Direct payment, or debit	Funds are drawn from the payer’s account	Bill payments, loan payments, and subscription fees

In a payroll credit, an employer sends pay to an employee’s account. In a bill debit, a customer allows a company to collect the amount due. This difference matters because a business needs the customer’s approval before it pulls money.

People may also use ACH to move money between their own accounts. One bank account sends the funds, and another receives them. Check whether your bank treats that transfer as a credit or debit when you review its timing or limits.

Why people and businesses use ACH

ACH can cost less than card processing for many business payments. Credit card fees can take a larger share of each sale, while ACH fees may be lower or set as a flat amount. Actual costs depend on the bank, payment provider, payment size, and plan.

ACH also works well for repeat payments. Payroll and monthly bills can run on set dates without asking someone to enter card details each time. That can cut manual work and reduce the risk of an expired card disrupting a payment.

ACH is not instant in every case. Standard transfers may take one to three business days, and weekends or bank holidays can affect the schedule. Same-day service may help with urgent payments, but check the service’s cut-off time and fees first.

Protect bank details and prevent ACH fraud

A routing number is not secret, but an account number should be handled with care. Share bank details only through a trusted bank, payment provider, or secure business process. Avoid sending full account data in an open email or chat.

Businesses should verify account details before the first debit. They can use test deposits, a bank sign-in check, or another approved method. Keep authorization records and limit access to staff who need the data to manage payments.

Watch for sudden requests to change a supplier’s bank details. Confirm any change through a known phone number, not the number in the new request. A short call can stop a payment from going to a fraudster.

Check bank statements often and report an unknown debit or credit to your bank promptly. Keep records of payment dates, amounts, approvals, and any changes. Clear records help you spot errors and respond to a payment dispute.