What is the difference between a wire transfer and an ACH?

The main differences between wire transfers and ACH transfers are speed, cost, and how they work behind the scenes:

Wire transfers typically arrive in the recipient’s account within the same business day if initiated prior to the 1pm cut off time, while ACH transfers typically take 1-3 business days to reach the recipient. They batch up transfers and process them at specific times throughout the day. While there is no fee for incoming wire transfers, outgoing wires typically have a fee of $20 for domestic and $40 for international. Wire transfers go directly from your bank to the recipient’s bank, using a secure messaging network, ACH transfers travel through a central hub called the Automated Clearing House. They gather with other transfers and batch them for processing.