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Utilizing ACH Transfers to Power Your Cross-Border Payments

Richard ClaytonRichard Clayton
December 15, 2021

ACH transfers have long been one of the leading B2B payment methods for US-based businesses, providing a convenient, secure and low-cost method for transferring business funds domestically. At Payoneer, we’ve taken ACH transfers one step further by giving you the ability to make these payments to your international recipients.

If ACH transfers aren’t already an integral part of your B2B payments, we’re here to explain why they should be. We’ll provide a side-by-side comparison between global ACH and international wire transfers and a quick guide to making a cross-border ACH payment with Payoneer. Ready to jump in? Let’s get started.

What Are ACH Bank Transfers?

ACH transfers utilize the ACH network to electronically transfer money between bank accounts, predominantly in the US. ACH processes billions of transactions every month, accounting for more than a third of domestic B2B payments. That’s compared to paper checks, which make up close to half of payments, and wire transfers, which are responsible for 14% of transactions.

When comparing domestic ACH and wire transfers, there are some important differences to highlight.

ACH Transfers vs. Wire Transfers (Domestic)

ACH Transfer Wire Transfer
Cost to send $0.25-$0.75 per transaction $25-$30
Cost to receive Free $15-$20
Processing time 3-4 business days Typically, one business day

The main issue many businesses have with ACH is that it’s almost exclusive to the US – very few banks process international transactions. For Payoneer users, however, that’s not a problem. Of the two options, wire transfers are significantly faster; they’re usually completed within 24 hours, while ACH transfers can take 3-4 business days. Still, that speed comes at a price, with wire fees ranging from $25-$30 to send and upwards of $20 to receive. Conversely, ACH transfers typically cost under $1 to send and are free to receive.

Using ACH for International Transactions with Payoneer

ACH Transfers with Payoneer vs. Wire Transfers (Cross-Border)

ACH Transfer Wire Transfer
Cost to send 0-1%* $45-$50
Cost to receive Free** $15-$20
Processing time 2-3 business days 1-5 business days

*Fees can be passed from the payer to the recipient

**Fees depend on the destination of the payment

Making global ACH payments with Payoneer is a simple process that provides you with all the benefits of a domestic transfer when dealing with your international service providers. Specifically, you’ll be able to take advantage of:

  • Low fees – Payoneer charges between 0 and 1% of the total amount you transfer, so, for example, a $2,000 monthly payment to your contractor in the Philippines will cost $20. Meanwhile, an international wire transfer of the same amount will cost $60-$70, meaning you’ll save 55-70% on fees every month with ACH transfers.
  • Payment tracking – As opposed to international wire transfers, which don’t provide you with status updates, ACH transfers with Payoneer can be tracked every step of the way so you know exactly when your payment reaches your recipient’s account.
  • Contractor satisfaction – Payoneer provides your contractors with several ways to use their funds after they receive your payment, like paying for online expenses or sending funds to their subcontractors for free, or just making a withdrawal to their local bank account. Additionally, Payoneer charges low conversion fees, including a 2% charge for converting USD to local currencies, vs. a 4%-6% fee at local banks.

Making an ACH Transfer with Payoneer

There are two ways to make an ACH transfer with Payoneer:

Paying a payment request

After receiving a payment request from your service providers or remote employees, you just need to enter your details and your recipient’s bank account information to make an ACH transfer. Both you and your recipients will be able to track the payment until it arrives to their Payoneer account.

Initiating a payment

To initiate a global ACH transfer with Payoneer, all you need to do is open an account. You’ll be able to choose from a variety of payment options, pay contractors in 200+ countries and send simultaneous payments to dozens of contractors using batch payments.

Ready to pay your international contractors with Payoneer? Opening an account is free and it takes only a few minutes to start saving on your international payments using ACH.

Register now

The content provided in this article including any information relating to pricing, fees, and other charges is accurate and valid only as of the date it was published. In addition, changes in applicable regulations, policies, market conditions, or other relevant factors may impact the accuracy of the mentioned pricing and fees and other associated details. Accordingly, it is further clarified that any information regarding pricing, fees and other charges is subject to changes, and it is your responsibility to ensure you are viewing the most up to date content applicable to you. Payoneer will provide the most up to date and accurate information relating to pricing and fees as part of the account registration process. Registered customers can view this information via their online account.

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