ACH vs SWIFT: What’s the difference?

Key takeaways

• In 2024, SWIFT routed 15.1 billion financial messages globally, while the US ACH network processed 35.2 billion payments.^1,2

• ACH serves as a domestic network for transferring funds within the US. SWIFT functions as a global messaging system for international bank transfers.

• Airwallex combines ACH and SWIFT payments on one platform to make it easier to manage global finance.

Choosing the right payment method affects business costs and settlement speed. Financial teams often choose between ACH and SWIFT when moving money locally and globally. Understanding the differences between these two networks helps efficient financial operations. This article breaks down the core differences between ACH and SWIFT in cost, speed, and global reach.

What is ACH?

The Automated Clearing House (ACH) is an electronic network that facilitates financial transactions within the US. Nacha (National Automated Clearing House Association) sets the operating rules, while operators like the Federal Reserve and EPN handle the processing of credit and debit transactions.³

ACH payment process

The ACH network batches transactions together and processes them at specific intervals throughout the business day. The originating bank sends a request to an ACH operator upon initiation of an ACH payment. The operator then routes the transaction to the receiving bank. This batching method keeps operational costs low.

Appropriate times to use ACH

ACH works best for domestic US payments that do not require immediate settlement.

Common use cases are:

• Payroll direct deposit

• Recurring subscription billing

• Tax refunds

• Vendor payments

• B2B invoice settlements in the U.S.

How Airwallex enables US ACH payments without a US entity

Airwallex allows foreign businesses to collect and pay funds in the US without needing a local legal entity or traditional bank account. Here’s a breakdown of how it works:

• Airwallex provides US routing and account numbers to receive ACH payments directly.

• Collecting domestic ACH payments typically incurs US$0 in fees, eliminating international wire costs for US customers.

• Batch transfers and automated accounting reconciliation streamline financial workflows as transaction volumes increase.

What is SWIFT?

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) serves as a secure messaging network. Banks and financial institutions worldwide use it to transmit information and instructions.

SWIFT payment process

SWIFT does not move funds directly. It sends secure payment orders between institutions using standardized codes. Banks rarely maintain direct accounts with every other global bank. A SWIFT message often routes through intermediary correspondent banks to settle the transaction. These intermediaries charge fees, which can make traditional SWIFT wire transfers expensive and difficult to track end-to-end without modern tracking standards like SWIFT GPI.

Appropriate times to use SWIFT

SWIFT works best for high-value international wire transfers requiring global reach and security. SWIFT securely carries payment instructions when paying suppliers in Europe, sending capital to overseas subsidiaries, or receiving funds from clients in Asia.

Differences between SWIFT codes and IBANs

These codes identify different details. A SWIFT code identifies a specific bank or branch on the international network. An International Bank Account Number (IBAN) identifies a specific individual bank account. Most international transfers require both the SWIFT code and the IBAN. This ensures the money reaches the correct account at the right institution.

ACH vs. SWIFT comparison overview

What’s the difference between ACH vs SWIFT?

ACH operates as a domestic network transferring funds directly between US bank accounts. SWIFT functions as a global messaging system sending cross-border payment instructions between banks.

• ACH operates within the US with limited international exceptions. SWIFT operates globally across more than 200 countries and territories.

• ACH transfers are free or cost under a dollar per transaction. SWIFT transfers incur fees ranging from US$15 to $50 plus potential intermediary markups.

• ACH payments clear in 1 to 3 business days. SWIFT transfers take 1 to 5 business days.

• ACH moves actual funds in batches through a centralized domestic clearinghouse. SWIFT sends secure payment orders requiring correspondent banks to move the actual money.

ACH routing numbers and SWIFT codes

ACH routing numbers and SWIFT codes serve entirely different networks and have distinct formats. An ACH routing number functions as a 9-digit numerical code identifying financial institutions exclusively within the US. 

A SWIFT code acts as an 8-character or 11-character alphanumeric code identifying banks globally. Senders cannot use a US routing number to send a SWIFT wire. Senders cannot use a SWIFT code to initiate a domestic ACH transfer.

How to use ACH for international payments

Global businesses can utilize International ACH Transfers (IAT) to send funds directly into local clearing systems. This option costs significantly less than SWIFT wires, though coverage is limited to participating countries, processing times are longer, and support varies by financial provider.

Managing both ACH and SWIFT for your business

Most businesses operating globally use ACH for US vendors and SWIFT for international suppliers. Airwallex multi-currency accounts allow businesses to manage both from a single platform. Companies hold funds in the currencies earned, convert at interbank exchange rates and route each payment along the most efficient rail. This method cuts down on forced currency conversions. It also limits exposure to FX markups and intermediary fees.

How to choose between ACH and SWIFT

Selecting the appropriate network depends on transaction size and final destination. Organizations opt for ACH during local US transfers to keep processing costs low, making it ideal for routine daily activity. Conversely, SWIFT is preferred when sending money across borders due to its expansive international reach. Financial specialists also use SWIFT for critical, high-value transfers that demand robust tracking and safety.

Frequently asked questions about ACH vs SWIFT

Is Zelle considered an ACH or wire network?

Zelle operates on an independent real-time payment network for instant peer-to-peer payments, distinct from standard ACH batching or wire networks, though underlying bank-to-bank settlements may utilize internal clearing rails.

Are there downsides to ACH payments?

Geographical limits and speed present the main downsides to ACH payments. The system restricts transfers primarily to the US. Batch processing prevents instant settlement. Non-sufficient funds can cause ACH transfers to return or reverse.

Do ACH payments require a SWIFT code?

Domestic ACH transfers only require the recipient bank account number and the 9-digit ABA routing number.

Is SWIFT used for ACH or wire?

Banks use SWIFT exclusively for international wires. SWIFT functions as a messaging network for global transactions. ACH acts as a domestic clearinghouse for US funds.

How do I find an ACH routing number?

Bank customers can find the 9-digit routing number in a few places:

• At the bottom left of paper checks

• Within online banking portals

• By searching official bank websites for specific branch routing numbers

How do I find a bank SWIFT code?

Paper bank statements and online banking portals list SWIFT codes. Online search tools also provide bank SWIFT codes.

Is ACH or SWIFT cheaper?

ACH costs significantly less. Most domestic ACH transfers cost nothing or under one dollar. SWIFT payments usually cost US$15 to $50. This doesn’t include possible fees from intermediary banks.

Sources

1. https://www.swift.com/sites/default/files/files/2025-swift-annual-review_v08-1.pdf

2. https://www.nacha.org/news/same-day-ach-and-business-business-payments-propel-ach-network-volume-growth-2025

3. https://www.nacha.org/content/abcs-ach