What is the difference between ACH and International Payments?

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ACH bank transfers and international payments are two delivery methods that use bank transfers to move money. Here are the main differences: 

What’s an ACH bank transfer? 

ACH bank transfer is both a payment and delivery method used to transfer money domestically (within the US) between banks. It can also be referred to by other names,  like direct deposit, direct debit, auto-pay, or the generic “bank transfer”. 

Businesses use ACH bank transfers for direct payments (ACH debit transactions) or direct deposits (ACH credit transactions). The transaction can take anywhere from 3-4 days to process. Once cleared, the money is deposited directly into your bank account or vendor’s account. 

With Melio, regular ACH bank transfers are free


What’s an international payment? 

An international payment is used to transfer money to vendors outside the US. Sending this type of payment involves additional functions - from intermediary banks to regulatory networks - to ensure transparency between foreign banks. International payments take 4 business days to process (5 business days for payments over $100K).

Sending an international payment with Melio costs a fixed fee of $20. This fee is a fixed rate, no matter the payment size. However if you pay via Mastercard or Visa credit card there is a fee of 2.9%.

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