An IBT payment moves money directly from one bank account to another
IBT stands for "inter-bank transfer." It is a way to send money from your account at one bank to an account at a different bank. The money moves electronically, usually within one to three business days, and the receiving bank deposits it directly into the account you specify.
You might use an IBT when you want to move savings from one bank to another, send money to a family member who banks elsewhere, or pay a bill at a company that only accepts bank transfers. The key difference from other payment methods is that both the sending and receiving accounts must be at banks — you cannot use an IBT to send money to a credit card, a mobile wallet, or a person without a bank account.
IBT is also called an "electronic funds transfer" or EFT in some contexts, though EFT is a broader term that includes other types of transfers. You may also hear it called an "ACH transfer" if the money moves through the ACH network, which is the system most U.S. banks use for these transfers.
Key Takeaways
- An IBT sends money electronically from one bank account to another bank account, taking one to three business days to complete.
- You need the receiving account holder's name, account number, and routing number to set up an IBT.
- Most banks let you start an IBT through online banking, mobile apps, or by calling customer service, and many do not charge a fee for outgoing transfers.
- Money sent by IBT cannot be recalled once the receiving bank accepts it, so double-check the account details before you confirm.
- IBT is different from wire transfers, which move money faster but usually cost money and are harder to reverse.
How to send an IBT from your bank account
Start by logging into your bank's online banking platform or opening the mobile app. Look for a section called "Send Money," "Transfer Funds," "Pay Someone," or "External Transfers" — the exact name varies by bank. If you cannot find it, call your bank's customer service line and ask how to set up a transfer to another bank.
When you start the transfer, the bank will ask for the receiving account holder's information. You will need their full name (exactly as it appears on their account), their account number, and their bank's routing number. The routing number is a nine-digit code that identifies the receiving bank. You can find it on a check, by calling the receiving bank, or by searching online for "[Bank Name] routing number."
After you enter this information, your bank will show you the amount you want to send and ask you to confirm. Once you confirm, the transfer is submitted. Most banks do not let you cancel an IBT after you confirm it, so read everything carefully before you click "send" or "confirm."
How long an IBT takes and when the money arrives
An IBT typically takes one to three business days to complete. This means if you send money on a Monday, it might arrive on Tuesday or Wednesday — or it might not arrive until Thursday if the receiving bank is slow to process it. Weekends and bank holidays do not count as business days, so a transfer sent on Friday may not arrive until the following Tuesday.
Some banks offer "same-day" or "next-day" transfers, but these are usually only available between accounts at the same bank or between banks that have a direct partnership. If you are sending money to a smaller bank or a credit union, it may take the full three days.
You can usually check the status of your transfer in your online banking account. Look for a "Recent Transfers," "Transaction History," or "Pending Transfers" section. If a transfer is taking longer than three business days, contact your bank to ask whether there is a problem.
What information you need before you send money
Gather the receiving account holder's information before you start the transfer. You will need their full legal name, their account number, and their bank's routing number. Write these down or have them ready on your screen so you can enter them correctly.
If you are sending money to someone you have transferred to before, your bank may have saved their information. You can usually select them from a list instead of typing everything in again. This reduces the chance of making a mistake.
Double-check the account number and routing number especially carefully. A single wrong digit means the money will go to the wrong account, and you may not be able to get it back. If you are unsure about any detail, contact the receiving bank or the person you are sending money to and ask them to confirm.
Fees and costs for IBT transfers
Most banks do not charge a fee for outgoing IBT transfers to accounts at other banks. However, some banks charge a small fee — usually between $1 and $5 — if you send a large number of transfers in a month or if you use a premium account type.
The receiving bank almost never charges the person receiving the money. The money arrives in their account in full, with no deduction.
Check your bank's fee schedule or call customer service to find out whether your account has any transfer fees. If you use online banking, your bank may also show the fee before you confirm the transfer.
IBT versus wire transfers and other payment methods
An IBT is slower than a wire transfer but cheaper and easier to reverse. A wire transfer moves money the same day or the next day, but it usually costs $15 to $50 and cannot be recalled once the receiving bank accepts it. Use a wire transfer only when you need money to arrive very quickly and you are certain the account details are correct.
An IBT is also different from a check or a credit card payment. A check takes longer (five to ten business days) and requires you to mail it or deposit it in person. A credit card payment sends money to a credit card account, not a bank account, and works differently.
If you need to send money to someone without a bank account, an IBT will not work. You would need to use a money transfer service like Western Union or MoneyGram, or send a prepaid card.
What happens if you send money to the wrong account
If you realize you made a mistake before you confirm the transfer, you can cancel it. Once you confirm, the transfer is submitted and you usually cannot stop it.
If the money goes to the wrong account, contact your bank when ready. Your bank can try to contact the receiving bank and ask them to return the money, but they cannot force the receiving bank to do so. If the receiving bank cooperates, the money may be returned within a few days. If they do not, you may not get the money back.
This is why it is so important to check the account number and routing number before you confirm. If you are sending money to someone you have never transferred to before, consider sending a small test amount first to make sure the account details are correct.
Frequently Asked Questions
Can I cancel an IBT after I send it?
Once you confirm the transfer, you usually cannot cancel it. Contact your bank when ready if you realize you made a mistake. Your bank can ask the receiving bank to return the money, but they cannot force them to do so. This is why checking the account details before you confirm is critical.
What is the difference between an IBT and an ACH transfer?
ACH is the network that most IBTs use to move money between banks in the United States. All ACH transfers are IBTs, but not all IBTs use ACH — some use other networks. For most people, the terms mean the same thing: money moving from one bank account to another.
Do I need to be at the bank in person to send an IBT?
No. You can send an IBT from home using online banking or a mobile app, or by calling your bank's customer service line. You do not need to visit a branch or speak to a teller.
Can I send an IBT to a savings account at a different bank?
Yes. An IBT works the same way whether the receiving account is a checking account, a savings account, or a money market account. You just need the account number and routing number.
What if the receiving bank is outside the United States?
An IBT only works between U.S. banks. To send money to a bank account outside the United States, you need an international wire transfer, which is more expensive and takes longer. Contact your bank to ask about international transfer options.