The three ways to move money between banks

You can send money to a different bank account in three main ways: a wire transfer, an ACH transfer, or a peer-to-peer payment app. Wire transfers are the fastest but cost money. ACH transfers are free or cheap and take a few business days. Peer-to-peer apps are when ready for some people but work best when both of you use the same app.

Which one you choose depends on how fast you need the money to arrive, whether you want to pay a fee, and what information you have about the person receiving it. Most people use ACH transfers for routine payments because they are free, and wire transfers only when speed matters enough to justify the cost.

Key Takeaways

  • Wire transfers move money the same day or next business day but typically cost $15 to $30 and cannot be reversed once sent.
  • ACH transfers are free or cost $1 to $3, take three to five business days, and can be reversed if something goes wrong.
  • Peer-to-peer apps like Venmo or Cash App move money when ready between users of the same app but work best for smaller amounts between people you know.
  • You will need the recipient's full name, routing number, and account number for wire and ACH transfers, or just their username for peer-to-peer apps.
  • Your bank's website or mobile app is usually the easiest place to set up a transfer; you can also call your bank or visit a branch in person.

Wire transfers: fastest but not reversible

A wire transfer moves money directly from your bank to another bank, usually within one business day. Your bank sends the funds electronically, and the receiving bank deposits them into the recipient's account. Once the money leaves your bank, you cannot get it back, so wire transfers are best used when you trust the recipient and have verified their account information.

Wire transfers cost between $15 and $30 depending on your bank and whether the receiving bank is domestic (within the United States) or international. Some banks charge less for online wire transfers than for transfers done in person or by phone. Call your bank or check their website to find out the exact fee before you send.

To send a wire transfer, you will need the recipient's full name, their bank's routing number, their account number, and the amount you want to send. You can initiate a wire transfer through your bank's website, mobile app, by phone, or in person at a branch. Most banks process wire transfers submitted before 2 p.m. on a business day the same day; transfers submitted after that time or on weekends may not go out until the next business day.

ACH transfers: free and reversible

An ACH transfer (Automated Clearing House) is an electronic transfer between bank accounts that takes three to five business days. Because ACH transfers move through a clearing system rather than directly from bank to bank, they are slower than wire transfers but much cheaper. Most banks offer ACH transfers for free, though some charge $1 to $3 for outgoing transfers.

The main advantage of an ACH transfer is that it can be reversed if there is a mistake. If you send money to the wrong account or the recipient never receives it, you can contact your bank and request a reversal within a set time window (usually 60 days). Wire transfers cannot be reversed this way, which is why ACH is safer when you are less certain about the account details.

To send an ACH transfer, you need the same information as a wire transfer: the recipient's full name, routing number, account number, and the amount. You can set up an ACH transfer through your bank's website or app, by phone, or in person. Many banks let you schedule ACH transfers in advance, so you can set up a payment to go out on a specific date.

Peer-to-peer apps: when ready but limited

Peer-to-peer payment apps like Venmo, Cash App, PayPal, and Zelle let you send money to someone using just their username or phone number, without needing their routing and account numbers. Money moves when ready or within minutes, and there is usually no fee if both people use the same app.

The catch is that both the sender and receiver need to have accounts with the same app. If you use Venmo and the person you are sending to uses Cash App, you cannot send money directly between the apps. Peer-to-peer apps also work best for smaller amounts between people you know, because they offer less protection if something goes wrong and the recipient claims they never received the money.

To use a peer-to-peer app, read it on your phone, create an account, and link your bank account or debit card. Then search for the recipient by their username or phone number and enter the amount you want to send. The money usually arrives in their account within minutes, though some apps hold the funds for a short time if it is your first transfer to that person.

What information you need for each method

The information required depends on which method you choose. For wire transfers and ACH transfers, you need the recipient's routing number and account number, which are printed on the bottom left of their checks or available through their bank's website or app. You also need their full legal name exactly as it appears on their account.

For peer-to-peer apps, you only need the recipient's username or the phone number associated with their account. This is why peer-to-peer apps are convenient for sending money to friends, but they do not work for paying businesses or people who do not use the same app.

If you do not have the recipient's routing and account numbers, you can ask them directly, call their bank, or look up their bank's routing number online if you know the bank name and state. Never send money without confirming the account details, because sending to the wrong account number means the money goes to a stranger and may be difficult to recover.

How to send money through your bank

Most banks let you send money through their website or mobile app without visiting a branch. Log into your account, look for a link that says "Send Money," "Transfer Funds," or "Pay Someone," and follow the steps. You will enter the recipient's information, the amount, and choose whether you want the transfer to go out when ready or on a specific date.

If you prefer to do it in person, visit a branch with the recipient's information and ask to send a wire transfer or ACH transfer. A teller will help you fill out the form and process the transfer. If you do not have online banking set up, you can also call your bank's customer service line and ask them to process the transfer over the phone, though some banks charge extra for this.

Before you send, double-check that you have entered the recipient's name and account number correctly. Many banks show you a preview of the transfer before it is final, so you can catch mistakes. Once you confirm, the transfer is submitted and you will receive a confirmation number.

What happens after you send the money

For wire transfers, the money usually arrives the same business day or the next business day. The receiving bank deposits it into the recipient's account, and they can use it when ready. Your bank will send you a confirmation email or text with a reference number you can use if you need to track the transfer.

For ACH transfers, the money takes three to five business days to arrive. During this time, the funds are in transit through the clearing system. You will see the transfer as "pending" in your account until it completes. Once it arrives at the receiving bank, the recipient's account is credited and they can use the money.

For peer-to-peer apps, the money usually arrives within minutes. The recipient will see a notification that they received money and can transfer it to their bank account if they want to withdraw it. Some apps let you withdraw when ready, while others require you to wait a day or two.

Frequently Asked Questions

Can I cancel a transfer after I send it?

Wire transfers cannot be cancelled once they are sent, so you need to be certain before you submit. ACH transfers can sometimes be cancelled if you contact your bank quickly, usually within one business day of sending. Peer-to-peer transfers can sometimes be cancelled if the recipient has not accepted the money yet, but this varies by app.

What if I send money to the wrong account number?

If you use an ACH transfer, you can contact your bank and request a reversal within 60 days. If you use a wire transfer, the money is gone and you would need to contact the receiving bank directly to ask them to return it, which they may not do. This is why it is critical to verify the account number before sending.

Do I need to know the recipient's bank name to send them money?

For wire and ACH transfers, you need their routing number, which identifies their bank. You do not need to know the bank name if you have the routing number. For peer-to-peer apps, you only need their username or phone number, not any bank information.

Is there a limit to how much money I can send?

Most banks set daily and monthly limits on how much you can transfer, which vary by bank and account type. Check your bank's website or call them to find out your limits. Peer-to-peer apps usually have lower limits than banks, often $500 to $2,000 per transaction.

What is the difference between a routing number and an account number?

A routing number identifies the specific bank branch where the account is held. An account number identifies the individual account within that bank. You need both to send a wire or ACH transfer. Both numbers appear on the bottom of a check, or you can ask your bank for them.