Sending Money to India – ACH vs Wire Transfer


If you have to send money from USA to India, there are several remittance options to choose from. Each option has its own advantages and therefore, you will have to make a choice based on the amount you are sending and how urgently you want the money to reach the recipient.

When sending money to India, you can choose either ACH or wire transfer option, depending on multiple factors.

ACH Transfers

It is an electronic network for financial transactions in the US.  Almost all banks in the United States of America have discovered the benefits of ACH (Automated Clearing House). In this type of money transfer, large numbers of credit and debit transactions are processed in batches.

You can initiate ACH remittances from reputed online money transfer agencies where the financial instrument of choice for making the payment will be your bank account. You will be utilizing the ACH system for presenting an electronic cheque (known as internet cheque) for making the payment for the remittance.

Comparing ACH and Wire Transfers

If you are initiating money transfer from USA to India, you first need to understand how ACH and wire transfers will work if you are sending money through a remittance agency.

  1. In case of ACH, you just need to enter the amount you want to transfer and book a transaction. The agency will ensure that the money is directly debited from your account and received by the recipient.
  2. In case of wire transfer, you need to book a money transaction and send money from your account to the agency’s account through wire transfer. Since you will be initiating a wire transfer, there is no need to pay high fees that is incurred in international wire transfers.
  3. In ACH, money can be sent from more than one US bank account. It is basically an electronic funds transfer system to which all US financial institutions are connected. There is no need to visit a bank and stand in a queue to initiate a transaction. Even wire transfers can be sent from any bank.
  4. For ACH transfers, a one-time verification of your bank account is done for ensuring that the details are secure.
  5. If you want the money to reach the recipient quickly, then you can choose to send funds through wire transfer. Compared to ACH transfers in which money reaches the recipient in approximately 5 working days, money through wire transfer reaches in 1-2 working days.
  6. Your bank will be charging you no fees for ACH transfer, however, for wire transfer, the charges can vary with each bank. Also, the fees for wire transfer is significantly low compared to the fees for international wire transfers.

No matter which remittance method you choose, you need to be extra careful about security when using internet to transfer money. You should use a secure device and internet connection so that your money and banking information remains safe from hackers.


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