Ans. There are two distinct ways to electronically move money from one bank account to another: ACH (Automated Clearing House) payments and wire transfers. The three key distinctions between the two are speed, cost, and processing methods. While ACH payments may take a few days to execute, wire transfers are instantaneous and may be completed in a matter of minutes. ACH payments are less costly than wire transfers since both the sender and the recipient must pay costs. On the other side, ACH payments are free or very inexpensive per transaction. Banks start and complete wire transfers, while a clearinghouse automatically completes ACH payments. Furthermore, ACH payments are safer than wire transfers since they are subject to additional laws, restrictions, and inspection. Unlike wire transfers, ACH transactions allow for reversals in case of a mistake or fraudulent activity.