Many foreign trade people may not understand the meaning and difference between ACH and Wire. Why is the money sent by customers using ACH returned by the bank?
ACH: Automated Clearing House (Automated Clearing House) is an electronic clearing system between financial institutions in the United States. ACH is used for electronic credit and debit transfer payments for institutions across the United States, and can only be transferred between banks in the United States. , it usually takes 2~3 working days to complete the transaction. The advantage of ACH is that the handling fee is relatively cheap, but the disadvantage is also obvious: it cannot be traced, and there are risks and hidden dangers of money laundering.
Wire: Clearing through the Fedwire system and SWIFT is more time-efficient and safer than ACH. If you want to send money across borders between different countries, the ACH method cannot be realized, and then you need Wire.
ACH is suitable for collections on North American e-commerce platforms, such as paypal withdrawals, Amazon, Walmart, Airbnb, Apple, etc.
Wire is suitable for general trade TT global transfers. General trade US dollar remittance accounts (B2B accounts) only support wire transfers (US Fedwire and global SWIFT), and any form of ACH fund remittance will be returned.
