International ACH Transfers Explained

In this article

• What does ACH stand for?
• How do ACH payments work?
• How do you make an international ACH transfer?
• What is an international ACH transaction (IAT)?
• ACH vs other payment methods
• What are the pros and cons of international ACH transfers?
• A better way to send payments internationally

What are International ACH Transfers?

International ACH (Automated Clearing House) transfers enable electronic payments across borders. These transfers are commonly used for payroll, vendor payments, and other international transactions, offering a cost-effective and reliable solution.

How Do ACH Payments Work?

ACH payments are processed in batches. When a payment is initiated, the details are sent to the ACH network, which then processes the transaction and sends it to the recipient's bank. This process ensures efficient and secure handling of funds.

How to Make an International ACH Transfer 

Initiate Transfer: Provide recipient’s bank details, including their account number and bank identifier (such as routing number or IBAN).

• Processing: The transfer is batched and processed, typically taking 1-5 business days.
• Completion: Funds are deposited into the recipient’s account once processing is complete.

What is an International ACH Transaction (IAT)?

An IAT is a specific type of ACH transaction that involves sending funds to or receiving funds from a financial institution outside the originating country. IATs are governed by rules that ensure compliance with international banking regulations.

ACH vs. Other Payment Methods

• SWIFT: Offers faster transfers but at higher costs due to intermediary fees. Suitable for urgent payments.
• Wire Transfers: Direct and fast but expensive, often used for large sums.
• Fintech Platforms: Provide competitive rates, faster transfers, and additional services like multi-currency accounts.

Pros and Cons of International ACH Transfers

Pros:

• Cost-Effective: Lower fees than wire transfers.
• Secure: Adheres to stringent security protocols.
• Automated: Ideal for recurring payments like payroll.

Cons:

• Processing Time: Typically 1-5 business days, not suitable for urgent payments.
• Availability: Limited to countries supporting ACH networks.

A Better Way to Send Payments Internationally

For faster and more flexible international payments, consider fintech solutions like RBK Pay These platforms offer real-time transfers, multi-currency support, and transparent fees, making global transactions easier and more efficient.

Get Started with RBK Pay

Visit the RBK Pay to learn more and sign up for an account. Experience seamless international payments with RBK Pay’s innovative solutions for your business.

For further details on international ACH transfers and how RBK Pay can benefit your business, visit RBK Pay's official site.