What is the difference between ACH and wire transfers?

Last updated: Mar 31, 2025

There are several differences between wire transfers (using Fedwire) and ACH transfers. Knowing these differences will help you to identify whether you are sending a wire transfer or an ACH transfer.

You can make a Plaid ACH purchase using the Buy Crypto widget on the website and Kraken app.

Wire transfers are facilitated either by a bank or through a third party provider and allow you to quickly transfer money between two parties.

While the method for most banks vary, we do provide Support articles on some of the most popular banking options and are always looking to add more. Below are support articles you can use to find how to initiate a wire.

Note: This is simply to get to the wire submission page for popular banks. The information for submitting the wire will be in your Kraken account under the appropriate funding option.

ACH stands for “Automated Clearing House” which is a system created by the Federal Reserve specifically designed for regularly sending funds between accounts or sending and receiving payments. 

There are a couple important factors to consider when choosing between wire transfers and ACH transfers via Plaid:

Fedwire

ACH (Via Plaid)

Cost to send
(what your bank charges)

$25-30

usually free ($3-10 to expedite) 

Deposit fee 
(what we charge)

$0-5

Free

Speed

same day*

next or X-business day not supported

Tracking Reference

IMAD/OMAD

15-digit Trace ID (TRN)

*This does not mean that your funds will always be credited to your Kraken account on the same day. Our funding providers may need to perform additional due diligence which can delay the settlement of your funds.

If your deposit fails because it was sent as ACH instead of Fedwire, the funds may take up to 10 business to return to your bank account.

Consult your bank to ensure you are sending a wire if you notice the following traits:

  • •

    The transfer is not specified as a "same day".

  • •

    The transfer does not cost $25-$30.

  • •

    You can schedule recurring payments or payment periods.

  • •

    Your bank requires sending 2 micro-deposits (deposits below a dollar) to verify the account details by having you confirm the transaction amounts.

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