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What is the difference between ACH and EFT?

The major difference between EFT and ACH is their scope of usage. EFT (Electronic Fund Transfer) covers all electronic payments, while ACH (Automated Clearing House) is a specific type of electronic payment that relies on the Automated Clearing House Network for its operation. In other words, all ACH payments are EFTs, 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

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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.

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

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

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