Introducing Professional Services. Learn how we can help accelerate your payments transformation.Learn more β†’

What is the difference between ACH and EFT?

The difference between ACH and EFT is that EFT (or, electronic funds transfer) is a general term that refers to all types of electronic payments whereas ACH (short for Automated Clearing House) refers to one specific type of electronic payment.

An ACH payment is an electronic debit or credit that is specifically processed by the Automated Clearing House Network. ACH payments are considered an EFT, but not all EFTs are ACH payments.

Some examples of EFTs that are not ACH payments include ATM or credit card transactions, payments made by supplying bank account information and transaction authorization via phone, or transactions made by manually entering payment information into point of sale fields on a checkout page.

An example of the flow of funds for an ACH payment

Learn more

ACH APIs enable companies with high transaction volumes to write software that automates payments over the ACH network. These APIs make it possible to initiate, receive and track payments at scale by eliminating manual processes.

Read more

Yes, ACH payments can be automated. One way to automate ACH payments is by using an ACH API.

Read more

You can accept ACH payments from customers via your business bank account or a third-party service or payment provider.

Read more

Subscribe to Journal updates

Discover product features and get primers on the payments industry.




Modern Treasury For

Case Studies





Popular Integrations

Β© Modern Treasury Corp.