Wire Transfers or ACH: Which Option Should You Use?   

At Payoneer, we’re always excited to offer our customers new ways of getting paid. With the recent introduction of Wire USD, we now enable you to get paid easily and securely in US dollars via wire transfers.

If you’d like to get paid in US dollars, you can also do so via Payoneer’s local receiving accounts which allows your clients abroad to pay you as if you had a local bank account. This payment method is generally known as ACH (Automatic Clearing House).

So, what’s the difference between the two payment methods, I hear you ask? Which option should you use – wire transfer or ACH? Let’s take a look.

What’s a wire transfer?

A regular wire transfer is an electronic transfer of money in which international payments are directly sent from one bank to another via the SWIFT network. It’s a fast and secure way to send money, with transfers usually taking place within the same day, depending on the countries, currencies and banks involved. The speed of wire transfers does come at a cost, which varies depending on the bank and amount being transferred.

With Payoneer’s Wire USD, your clients can make a wire transfer in US dollars directly to your Payoneer account, from wherever they’re based around the world.

What’s an ACH transfer?

An ACH transfer such as payroll or direct deposits, is an electronic bank-to-bank transfer processed by the Automatic Clearing House network. Transfers are sent to the Federal Reserve from the issuing bank and then deposited into the receiving bank. ACH transfers typically take between 2 to 3 business days and are typically inexpensive or free.

With Payoneer’s local receiving accounts, your clients can make a ‘local’ bank transfer in dollars, directly to your Payoneer account. There is a fee between 0-1%.

So, which option is best for you?

Understanding how these two platforms differ allows you to choose the right payment option for your business.

If speed is essential to you at any given time, wire transfers may be the way to go. On the other hand, you’re less concerned about receiving the payment the same day, and would rather save yourself some dollars, ACH transfers would likely be the choice for you.