Difference between wire transfers and ACH

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

What are ACH Transfers?

ACH transfers are a safe way to transfer funds between two parties. 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.

What are Wire Transfers?

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

Wire Transfers vs. ACH Transfers

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

Cost: A wire transfer will typically cost between $25-$30. This fee is charged to you by your bank. ACH transfers are usually free, or $5-$10 if you ask the bank to speed up delivery. If the transfer does not cost $25-$30, you are not sending a wire transfer, and the funds will not be credited to your Kraken account.

Speed: Wire transfers are always notated same day transfers. This does not mean that your funds will always be credited to your Kraken account the same day. Our partners may need to perform additional due diligence which can delay the settlement of your funds. If the transfer is not specified as a same day transfer, then you are not sending a wire transfer.