Payment Methods Comparison

ACH vs Wire vs RTP: Which Payment Method Should Your Business Use?

ACH transfers cost pennies but take 1–3 days. Wire transfers arrive same-day but cost $15–$50. RTP (Real-Time Payments) settles instantly, 24/7, at moderate cost. The right choice depends on your payment's urgency, value, and whether your bank supports each option.

Key Takeaways

  • ACH: Cheapest ($0.10–$0.75), slowest (1–3 days), ideal for routine payments.
  • Wire: Most expensive ($15–$50), same-day, ideal for urgent high-value transfers.
  • RTP: Mid-range cost ($0.50–$2), instant 24/7, ideal for time-sensitive smaller payments.
  • Most businesses should default to ACH and use wires/RTP only when speed matters.
  • RTP adoption is growing but not yet universal across all banks.

Related comparisons

Compare business banks by payment method support and fees:

Side-by-Side Comparison

FeatureACHWire TransferRTP
Speed1–3 business daysSame day (hours)Seconds (24/7)
Typical Cost$0.10 – $0.75$15 – $50$0.50 – $2.00
AvailabilityBusiness days onlyBusiness hours24/7/365
ReversibilityLimited windowGenerally finalGenerally final
Transaction LimitVaries by bankHigh/unlimitedOften $100K–$1M
InternationalLimitedYes (SWIFT)Domestic only (US)
Best ForPayroll, recurring billsLarge, urgent paymentsTime-sensitive, moderate value

When to Use Each Payment Method

Use ACH when:

  • Payment isn't time-sensitive (can wait 1–3 days)
  • Running payroll or paying recurring vendors
  • Cost savings matter more than speed
  • Processing high volume of payments

Use Wire when:

  • Same-day delivery is required
  • Large transaction value (real estate, acquisitions)
  • International payment where ACH isn't available
  • Counterparty requires wire for cleared funds

Use RTP when:

  • Instant settlement needed without wire costs
  • Weekend or after-hours payment is required
  • Paying contractors who need immediate funds
  • Your bank supports RTP sending

Real-World Example: Choosing the Right Method

A small marketing agency needs to make three payments:

PaymentAmountUrgencyRecommended Method
Monthly office rent$3,000Due in 5 daysACH ($0.25)
Emergency freelancer payment$2,500Needed todayRTP ($1.00) or Wire ($25)
International vendor deposit$15,000Due tomorrowWire ($45)

By choosing the right method for each payment, the agency pays ~$46 in fees instead of $95+ if they used wires for everything.

Common Mistakes to Avoid

  • Using wires for routine payments: Switch to ACH and save $15–$50 per transfer
  • Assuming RTP is available: Check with your bank before planning on RTP
  • Ignoring transaction limits: RTP often has lower limits than wires
  • Not planning for weekends: Only RTP processes on weekends and holidays

Business Banks Supporting Multiple Payment Methods

These banks may offer ACH, wire, and RTP options for businesses that need flexible payment solutions.

Mercury

Fintech platform combining banking services* with powerful financial software. Supports ACH and wire transfers. May be suitable for businesses seeking modern payment tools across multiple methods.

Mercury is a fintech company, not an FDIC-insured bank. Banking services are provided by Choice Financial Group and Column N.A., Members FDIC.

Bluevine

Business banking with ACH capabilities and transparent fee structures. May offer multiple payment options for small businesses.

Chase

Traditional bank offering ACH, wire transfers, and comprehensive treasury services. May support multiple payment rails for businesses with diverse needs.

Next Steps

Ready to optimize your payment strategy? Here are your next steps:

Frequently Asked Questions

What is the difference between ACH, wire, and RTP?

ACH is batch-processed and takes 1-3 days but costs under $1. Wire transfers are same-day but cost $15-$50. RTP (Real-Time Payments) settles in seconds, 24/7, with fees typically between ACH and wire costs.

Which payment method is cheapest for businesses?

ACH is the cheapest option, typically costing $0.10 to $0.75 per transaction. RTP fees vary but are often $0.50 to $2.00. Wire transfers are most expensive at $15 to $50 per transfer.

When should I use RTP instead of ACH or wire?

Use RTP when you need instant settlement (like same-day contractor payments) but don't want to pay wire fees. RTP works 24/7 including weekends, unlike wires which only process during banking hours.

Do all banks support RTP?

No, RTP adoption is still growing. Many major banks support RTP for receiving, but sending RTP may be limited. Check with your bank about RTP availability for business accounts.

Can ACH, wire, and RTP all be reversed?

ACH has limited reversal options within certain timeframes. Wire transfers and RTP are generally final once sent—they cannot be reversed without the recipient's cooperation.

Calculate Your Payment Costs

Use our free calculators to compare ACH and wire costs for your business.

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