A plain-language comparison of the three main US payment rails for business-to-business payments: speed, cost, limits and reversibility.
When you give a US client account and routing numbers, they will usually pay by ACH or wire, and increasingly by FedNow. The rail they choose decides how fast you are paid. Here is what you need to know about each.
ACH
ACH is the most common way US businesses pay suppliers. It is cheap for the sender, often free, which is why accounts payable teams prefer it. It is processed in batches, so it is not instant.
- Typical arrival: one to two business days.
- Cost to sender: low or free.
- Good for: regular invoices where a day or two does not matter.
Wire
A domestic wire moves funds individually and usually arrives the same business day, often within hours, if sent before the bank's cut-off time. Banks typically charge the sender a fee, so clients sometimes reserve wires for larger or urgent payments.
- Typical arrival: same business day.
- Cost to sender: a bank fee, varying by bank.
- Good for: large or time-sensitive payments.
FedNow
FedNow is the Federal Reserve's instant payment service. Payments settle within seconds, around the clock, but only if both the sending and receiving banks support it. Not every bank offers it to business customers yet, so availability depends on your client's bank.
Side by side
| ACH | Wire | FedNow | |
|---|---|---|---|
| Typical arrival | 1 to 2 business days | Same business day | Seconds, 24/7 |
| Sender cost | Low | Bank fee | Set by the bank |
| Availability | Every US bank | Every US bank | Participating banks |
What to put on your invoice
If speed matters, say so: ask for wire for amounts above a threshold you choose, and accept ACH for smaller invoices. Include your reference and ask clients to copy it exactly into the payment description so the payment can be matched automatically.
Receive ACH, wire and FedNow payments in your company's name.
Receive USDThis article is general information, not legal, tax or financial advice. Services described are provided by Bridge, a Stripe company, and availability depends on your country and account.