What you need before you start
To set up an ACH payment, you need three things: a bank account with ACH transfer capability (nearly all checking and savings accounts have this), the recipient's routing number and account number, and the recipient's full legal name as it appears on their account. You also need to know whether you are paying a person, a business, or a government agency, because the setup steps differ slightly depending on who is receiving the money.
Most banks allow ACH payments through their online banking portal, mobile app, or by phone with a representative. The method you choose affects how fast the payment moves and what information you need to provide upfront. If you are paying a bill to a company that already has your account on file (like a utility or credit card), the setup is usually already done — you just authorize the payment amount and date.
ACH payments are free or very low-cost at most banks. Some banks charge a small fee ($1 to $3) for outgoing ACH transfers to accounts outside their network, but many waive the fee entirely. Check your bank's fee schedule or ask a representative before you set up the first payment.
Key Takeaways
- You need the recipient's routing number, account number, and full legal name to set up an ACH payment; the routing number identifies their bank and the account number identifies their specific account.
- ACH payments take one to three business days to arrive, so plan ahead if you have a bill due date or need the money to reach someone quickly.
- Online banking portals and mobile apps are the fastest way to set up a one-time ACH payment; calling your bank takes longer but works if you do not have online access.
- Recurring ACH payments (like monthly rent or loan payments) require you to authorize the payee once, after which they can pull the money on a schedule you set.
- ACH payments are reversible within a limited window if you catch an error, but once the money arrives at the recipient's bank, recovery is harder and depends on their cooperation.
Setting up a one-time ACH payment online
Log into your bank's online banking portal or open the mobile app. Look for a button or menu labeled "Send Money," "Transfer," "Pay," or "ACH Transfer" — the exact wording varies by bank. Click it and select the option for sending money to an external account (not a transfer between your own accounts at that bank).
Enter the recipient's information: their full legal name, routing number, account number, and account type (checking or savings). Double-check the routing number and account number character by character — a single digit wrong will send the money to the wrong account or cause the transfer to fail. If you are unsure of the routing number, ask the recipient directly or look it up on their bank's website using the bank name.
Enter the amount and choose the payment date. Most banks process ACH payments submitted before a cutoff time (usually 5 p.m. Eastern) on the same business day. If you submit after the cutoff or on a weekend or holiday, the payment enters the queue for the next business day. The money typically arrives one to three business days after the bank processes it, depending on the recipient's bank.
Review the details one more time, then confirm. Your bank will show you a confirmation number. Save or screenshot it — you will need it if you have to dispute the payment later or if the recipient says they never received it.
Setting up recurring ACH payments
Recurring ACH payments work in two ways: either you authorize your bank to send the same amount on a schedule you set, or you authorize the payee (the person or company receiving the money) to pull the payment from your account on a schedule they set. The first method is called a "push" payment; the second is called a "pull" payment or recurring ACH authorization.
For push payments, log into your bank and look for "Recurring Transfer," "Scheduled Payment," or "Bill Pay." Enter the recipient's information, the amount, and the frequency (weekly, bi-weekly, monthly, etc.). Set a start date and an end date, or leave the end date open if the payment continues indefinitely. Your bank will process and send the payment automatically on the schedule you chose.
For pull payments, the payee sends you an authorization form or a link to sign electronically. You provide your routing number, account number, and permission for them to debit your account. Common examples are rent payments to a landlord, loan payments to a lender, or subscription fees to a service. Once authorized, they pull the payment on the date they specify — usually the same day each month. You can cancel a pull authorization at any time by contacting your bank or the payee directly.
With recurring payments, set a reminder to review the transactions each month. If the amount changes or the payment stops, contact the payee immediately to confirm whether it was intentional.
Setting up ACH payments by phone
Call your bank's customer service number (on the back of your debit card or on their website). Tell the representative you want to set up an ACH transfer or bill payment. Have the recipient's information ready: their full name, routing number, account number, and account type.
The representative will ask you to verify your identity (usually by confirming your account number, Social Security number, or answers to security questions). They will then enter the recipient's information into their system and confirm the details back to you before processing. This method is slower than online banking — it can take 10 to 20 minutes — but it works if you do not have online access or prefer to speak with someone.
Ask the representative when the payment will process and when it should arrive. Request a confirmation number and write it down. If the payment does not arrive on time, you will need this number to trace it.
What happens after you submit the payment
Your bank debits your account immediately or within one business day, depending on whether you scheduled the payment for today or a future date. The money then enters the ACH network, which is a clearing system run by the Federal Reserve and private operators. The ACH network batches payments and processes them in cycles throughout the day.
The recipient's bank receives the payment one to three business days later. On the day it arrives, the recipient's bank credits their account. The recipient can then withdraw or use the money. Weekends and federal holidays do not count as business days, so a payment submitted on Friday may not arrive until Tuesday.
Once the money arrives at the recipient's bank and their account is credited, the payment is generally final. If you need to reverse it, you must contact the recipient and ask them to return the money — your bank cannot force them to do so. However, if you catch the error before the payment leaves your bank (usually within a few hours), you can cancel it by calling your bank immediately.
Fixing mistakes and disputing payments
If you sent money to the wrong account, contact your bank as soon as you notice the error. If the payment has not yet left your bank, they can cancel it. If it has already been sent, your bank can file a return request with the recipient's bank, asking them to reverse the transaction. The recipient's bank will then contact the account holder and ask them to return the money. This process takes five to ten business days.
If the recipient's bank cannot recover the money (for example, if the account holder refuses to return it or has already spent it), your bank can file a dispute on your behalf. Disputes are more formal and take longer — typically two to four weeks — but they create a record that may help you recover the money or protect you from future fraud. Your bank will ask you to provide documentation of the error and any communication with the recipient.
If someone else sent money from your account without your permission, report it to your bank immediately. Under the Electronic Funds Transfer Act, you have a limited window to dispute unauthorized transfers — usually 60 days from the date the transaction appears on your statement. The sooner you report it, the better your chances of recovery.
Keep records of every ACH payment you make: the confirmation number, the date submitted, the date it should arrive, the recipient's name and account number, and the amount. If a dispute arises, these details will help your bank investigate.
Common reasons ACH payments fail or delay
The most common reason an ACH payment fails is an incorrect routing number or account number. If either is wrong, the payment bounces back to your bank within one to three business days, and your account is re-credited. Your bank will notify you of the failure. Correct the information and resubmit.
Payments also fail if the recipient's account is closed or if the account holder has placed a hold or freeze on incoming transfers. In these cases, the recipient's bank returns the payment with a reason code. Your bank will contact you with the details.
ACH payments delay if you submit them after your bank's cutoff time, on a weekend, or on a federal holiday. The payment enters the queue for the next business day. Some banks also delay payments if they flag them as potentially fraudulent — this is rare but can happen if the amount is unusually large or the recipient is new to your account.
If a payment is delayed longer than expected, contact your bank with the confirmation number. They can trace the payment through the ACH network and tell you where it is and when it should arrive.
Frequently Asked Questions
Can I cancel an ACH payment after I submit it?
Yes, but only if you act quickly — usually within a few hours of submission. Call your bank immediately and provide the confirmation number. If the payment has not yet left your bank, they can cancel it. Once it enters the ACH network, cancellation becomes much harder and depends on whether the recipient's bank has already processed it.
Is ACH safer than wire transfer or credit card?
ACH is generally safer than wire transfer because it is reversible within a window and has stronger fraud protections under federal law. It is less convenient than credit card for one-time purchases because it takes longer, but it costs less and does not create a credit inquiry. For recurring bills, ACH is the standard and safest option.
What is the maximum amount I can send via ACH?
Most banks allow ACH transfers up to $10,000 to $25,000 per day, depending on your account history and the bank's policy. Some banks allow higher limits if you request them. Check your bank's transfer limits in online banking or call customer service to confirm.
Do I need the recipient's name to match their account exactly?
Yes. The name you enter should match the legal name on their account. If it does not match exactly, the payment may fail or be delayed. Ask the recipient for their full legal name as it appears on their bank account if you are unsure.
How do I know if the ACH payment arrived?
Your bank will show the payment as "sent" or "posted" in your transaction history once it leaves your account. The recipient's bank will show it as "received" or "deposited" in their account once it arrives. Ask the recipient to confirm they received it, or check their bank account if you have access. If the payment does not arrive within three business days, contact your bank to trace it.