ACH transfer is a payment or deposit method that comes from the traditional banking world.
More specifically, an ACH transfer is a payment made electronically between bank accounts through the ACH network
ACH stands for Automated Clearing House, which is a U.S. financial network used by individuals, businesses, and federal, state, and local governments for electronic fund transfers and payments.
The ACH system allows businesses and consumers to move money between bank accounts quickly and safely, without using paper checks, credit card networks, wire transfers, or cash.
An ACH transfer requires only a few basic pieces of information:
- Bank account number
- Bank routing number
Crypto traders and investors can use ACH transfers to fund their personal cryptocurrency wallets and trading accounts.
Centralized cryptocurrency exchanges (CEX) and service providers offer ACH payments as a deposit method because it transfers funds directly from the customer’s bank account, unlike credit cards which were at a time, banned from being used to make crypto-related purchases or deposits.
ACH payments or transfers typically take 3-4 business days to complete.