ACH Transfer
An ACH transfer is an electronic bank transfer processed through the US Automated Clearing House network. Crypto exchanges and financial platforms may support ACH transfers for moving US dollars between a user's bank account and their platform account.
✦ Key Insight
ACH is a common bridge between traditional US banking and crypto platforms. It may be used to: Fund exchange accounts Withdraw dollars Purchase crypto Redeem balances Connect bank accounts ACH transfers are different from blockchain transactions. They operate through the traditional banking system rather than a public blockchain.
✕ Common Misconceptions
Assuming ACH is instantaneous final settlement
Confusing ACH with a wire transfer
Attempting to withdraw funds before clearing
Providing incorrect bank details
Ignoring deposit limits
Assuming ACH works internationally
Detailed Explanation
How It Works
A user connects or provides information for a bank account.
The platform submits an ACH debit or credit through the banking network.
Depending on the service, a transfer can take time to fully clear even if the platform displays the funds earlier.
Platforms may place temporary withdrawal restrictions on recently deposited funds while settlement completes.
FAQs
Is ACH a blockchain transfer?
No.
Is ACH the same as a wire transfer?
No. They use different payment rails and settlement processes.
Can ACH deposits be reversed?
Traditional bank transfers can have return or reversal processes under certain circumstances.