Fast comparison
| Factor | ACH | Wire |
|---|---|---|
| Typical use | Payroll, vendor payments, recurring | High-value, time-critical, one-off |
| Cost | Usually lower | Usually higher |
| Speed | Same-day or next-day (varies) | Often same-day (cutoffs apply) |
| Reversibility | Some return mechanisms exist | Generally hard to recall once released |
Decision rules that work
- Use ACH for routine payments where cost and automation matter.
- Use wires for urgent, high-value payments where settlement speed is critical.
- For either method: ensure dual approval and alerting above thresholds.
Don’t forget cutoffs
Most issues come from missed cutoffs. Document cutoffs per bank and build “buffer time” into your AP calendar.