ACH vs. EFT – The Difference Between

How are EFT and ACH different? No doubt you are very familiar with electronic banking but there is…

How are EFT and ACH different?

No doubt you are very familiar with electronic banking but there is a pretty good chance that you have never heard of EFT and ACH unless you work in the banking industry. These are acronyms that are associated with the electronic transfer of money. EFT stands for Electronic Funds Transfer and ACH stands for Automated Clearing House.

About ACH

ACH (Automated Clearing House) is an electronic network of US financial institutions that do the job of clearing batches of transactions that have been performed online, debits and through automated teller machines. With this technology you are able to pay your bills online, send email money transfers and have your paycheck deposited into your account. You can do all of this from home and there is no need for check writing or to line up at the bank.

About EFT

EFT (Electronic Funds Transfer) refers to the process of sending money online or electronically. You can transfer funds from one account to another, send money in an email, and pay bills electronically. There is less need for carrying cash around with you and you don’t have to rely on checks or money orders to pay your bills. The transactions are also easy to trace so if money gets lost it can be found a whole easier than lost cash.

Difference between EFT and ACH

You may think that both EFT and ACH refer to the same thing and while they do in some way they are also very different terms. EFT refers to all electronic transfer of funds that takes place between you and another party. ACH is the manner in which all transactions are cleared. It is usually done overnight and in batches.


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