ACH transfer: definition, example, and why it matters

Cheap (~$0.25 per transaction) but slow — 1–3 business days. Best for B2B invoices and large amounts where card fees would be punishing. Customers pay using their routing + account number.

• Short definition. An electronic bank-to-bank transfer over the US Automated Clearing House network.
• Category. ACH transfer is a payments term used by service businesses when billing customers.
• How Glo Invoice handles it. Glo Invoice builds ach transfer into the invoice itself, so you don't track it on paper or in a spreadsheet.

Frequently asked questions

What does ach transfer mean?

Cheap (~$0.25 per transaction) but slow — 1–3 business days. Best for B2B invoices and large amounts where card fees would be punishing. Customers pay using their routing + account number.

Related terms

• Wire transfer — A same-day bank transfer of funds, typically used for large or international payments.
• Card payment — A payment made by credit or debit card, processed online or in person.
• Stripe — A payment processor that lets businesses accept cards, ACH, and wallets online.