IBT is a way to move money between bank accounts without writing a check or using a wire transfer
IBT stands for Internet Banking Transfer. It is a method your bank offers to send money from your account to another account—either at the same bank or at a different bank—using the bank's website or mobile app instead of a physical check or a phone call.
When you use IBT, you log into your bank account online, enter the recipient's account number and routing number, choose the amount, and submit the transfer. The money moves electronically. Most IBTs arrive within one to three business days, though some banks offer same-day transfers for an extra fee or as a standard feature.
IBT is different from a wire transfer because it is slower and usually costs nothing, whereas wire transfers are faster but often charge a fee. It is also different from a check because the money leaves your account electronically and the recipient does not have to deposit a physical piece of paper.
Key Takeaways
- IBT moves money electronically between bank accounts through your bank's website or app, with no check or phone call required.
- Most IBTs take one to three business days to arrive, though some banks offer same-day options.
- IBT is usually free, making it cheaper than a wire transfer but slower.
- You need the recipient's account number and routing number to set up an IBT, and you can save frequent recipients for faster future transfers.
How to send an IBT from your bank account
Log into your bank's website or open the mobile app. Look for a link or button labeled "Transfer Funds," "Send Money," or "Pay to Another Account." Click it and you will see a form asking for the recipient's information.
Enter the recipient's full name, account number, and routing number. If you are sending to someone at your own bank, you may only need the account number. If you are sending to another bank, you will need both the account number and the nine-digit routing number. You can find a routing number on the recipient's check, or they can call their bank to ask.
Enter the amount you want to send and choose the date. Most banks let you schedule a transfer for today or a future date. Add a note if you want—this helps the recipient know what the money is for. Review all the details, then click "Confirm" or "Submit." Your bank will send a confirmation number. Save it or take a screenshot.
How long an IBT takes to arrive
Standard IBTs take one to three business days. This means if you send money on a Friday, it may not arrive until Tuesday, because weekends and bank holidays do not count as business days.
Some banks now offer same-day or next-day transfers at no extra cost, especially for transfers within the same bank. Others charge a small fee—usually $1 to $5—to speed up the transfer. Check your bank's website or call customer service to see what options are available to you.
The receiving bank also plays a role. Even if your bank sends the money the same day, the recipient's bank may take an extra day to post it to their account. This is normal and not something you can control.
IBT versus wire transfers and other payment methods
| Method | Speed | Cost | Best for |
|---|---|---|---|
| IBT (Internet Banking Transfer) | 1–3 business days | Free | Routine payments, no rush |
| Wire transfer | Same day or next day | $15–$50 | Large amounts, urgent transfers |
| Check | 3–7 business days | Free | Formal payments, record-keeping |
| ACH transfer | 1–3 business days | Free | Payroll, bill payments, recurring transfers |
| Mobile payment app | Instant to 1 day | Free | Peer-to-peer payments, small amounts |
IBT and ACH transfer (Automated Clearing House) are often used interchangeably, though technically ACH is the system that processes many IBTs behind the scenes. Both are free and take one to three business days.
Wire transfers are faster but cost money and are harder to reverse if you make a mistake. Checks are free but slow and require the recipient to deposit them. Mobile payment apps like Venmo or PayPal are instant for peer-to-peer transfers but may have limits on how much you can send.
What information you need to send an IBT
You need the recipient's full name, account number, and routing number. The account number is usually 8 to 12 digits and identifies the specific account. The routing number is nine digits and identifies the bank or credit union.
If the recipient is at your own bank, you may only need their account number. If they are at a different bank, you need both. You can find a routing number by asking the recipient, checking their bank's website, or using a routing number lookup tool online.
Some banks also ask for the account type—checking or savings—to make sure the money goes to the right place. Double-check all details before you submit, because sending money to the wrong account number means it goes to the wrong person, and getting it back can take time.
Saving recipients and scheduling recurring IBTs
Most banks let you save a recipient's information so you do not have to type it in every time. After you complete your first transfer, your bank will ask if you want to save the recipient. Click yes, and next time you can just select their name from a list.
You can also schedule recurring transfers—for example, sending the same amount to the same person every month. This is useful for rent, loan payments, or regular support payments. Set it up once, and your bank handles the rest automatically until you cancel it.
You can change or cancel a scheduled transfer at any time before it processes. Log into your bank account, find the scheduled transfer, and click "Edit" or "Cancel." If the transfer has already been sent, you cannot cancel it through your bank—you would need to contact the recipient and ask them to send the money back.
What to do if an IBT does not arrive on time
If an IBT does not arrive within the timeframe your bank promised, log into your account and check the transfer status. Most banks show whether a transfer is "pending," "processing," or "completed." If it shows "completed" on your end but the recipient has not received it, the delay is likely at their bank.
Call your bank's customer service line and provide the confirmation number from your transfer. They can trace the transfer and tell you exactly where it is. If there was an error—for example, you entered the wrong account number—your bank can sometimes stop the transfer before it arrives. If it already arrived at the wrong account, your bank can file a claim to recover the funds, but this process can take weeks.
If your bank made the error, they should reverse the transfer and resend it to the correct account at no cost to you. If you made the error, your bank may charge a fee to file a recovery claim.
Frequently Asked Questions
Can I cancel an IBT after I send it?
It depends on the status. If the transfer is still "pending" or "processing," you may be able to cancel it through your bank's website or by calling customer service. Once it shows "completed," it has left your bank and you cannot cancel it—you would need to contact the recipient and ask them to return the money.
Is IBT the same as ACH?
IBT and ACH are related but not identical. ACH is the system that processes the transfer. IBT is the method you use to initiate it through your bank's website or app. Most IBTs are processed through the ACH system, so the terms are often used the same way.
Do I pay taxes on money I receive through IBT?
No. IBT is just a way to move money between accounts. If the money is a gift, a loan repayment, or a refund, it is not taxable income. If it is payment for work or a business transaction, it may be taxable—but that depends on the source of the money, not the transfer method.
What happens if I enter the wrong routing number?
The transfer will go to the wrong bank. Your bank can sometimes stop it if you catch the error quickly, but once it arrives at another bank, recovery is difficult and slow. Always double-check the routing number before you submit.
Can I set up an IBT to a savings account at a different bank?
Yes. IBT works to any account type—checking or savings—at any bank. You just need the account number and routing number for the savings account.