Skip to main content

What's the difference between ACH and wire transfer?

Learn the difference between domestic ACH, domestic wire and international wire transfers and the costs to send a transfer.

Updated over a week ago

This article applies to Adro Business accounts.

Domestic ACH is a low-cost way to send money within the US, often used for paying bills, salaries, or transferring between bank accounts. It runs on a batch processing system, so transfers can take 1–3 business days.

It's free to send and receive ACH transfers to or from your Adro account and another US bank.

Domestic Wire Transfer is best for urgent or high-value payments, like buying a property or sending large sums. It moves money directly from one bank to another, often arriving the same day—but at a higher fee and with little room for reversal once it's sent.

To send domestic wire transfers, Adro charges $15.00 fee. It is free to receive inbound domestic wire transfers.

International Wire Transfer is used for sending money across borders. It involves currency conversion and goes through international banking networks like SWIFT, which means it can take a few days and usually costs more due to fees and exchange rates.

To send international wire transfers, Adro charges a fee which is displayed before you initiate the transfer. It is free to receive inbound international wire transfers.

Which transfer method should I use?

Domestic ACH Transfer (US-based)

Best for routine, non-urgent payments

  • Payroll: A company pays employees every two weeks via ACH direct deposit

  • Vendor payments: A small business pays its regular supplier for monthly inventory

  • Subscription services: A SaaS company collects recurring payments from clients

  • Utility bills: Businesses automate payments for electricity, internet, and rent

ACH is ideal when cost savings matter more than speed.

Domestic Wire Transfer

Best for urgent or high-value transactions

  • Real estate closings: A business wires funds to purchase office space

  • Large equipment purchase: A manufacturer pays $250,000 for machinery

  • Legal settlements: A company sends a time-sensitive payment to resolve a dispute

  • Emergency vendor payment: A retailer wires money to restock inventory before a major sale

Wire transfers are fast and final—great for time-sensitive deals.

International Wire Transfer

Best for cross-border payments

  • Importing goods: A US company pays a supplier in Germany for raw materials

  • Remote team payroll: A startup pays contractors in India and Brazil

International wires handle currency conversion and global compliance.

Why are there fees on domestic and international wire transfers?

Wire transfers incur fees because they’re processed individually, often in real time, and involve more complex bank-to-bank communication.

Domestic wires rely on systems like Fedwire and require manual verification, tight security, and immediate settlement, which adds operational cost. International wires are even more intricate, with currency conversion, intermediary banks, and regulatory checks through networks like SWIFT, which all contribute to the higher fees.

In contrast, ACH transfers are batch-processed through a centralized automated system that handles thousands of transactions simultaneously. This efficiency allows banks to offer them at little or no cost, though they take longer to settle (usually 1–3 business days).

Why do fees fluctuate on international wire transfers?

International wire transfer fees fluctuate because they depend on several dynamic factors tied to banking infrastructure, currency markets, and regional regulations.

First, exchange rate markups vary daily based on global currency fluctuations. Second, intermediary bank fees—charged when a transfer passes through multiple banks—can differ depending on the route, country, and number of institutions involved. Additionally, regulatory and compliance costs vary by region, especially in countries with strict currency controls or limited banking networks, which can drive up fees unexpectedly.

Did this answer your question?