ACH Push

Definition of ACH Push

An ACH push refers to a type of ACH transaction where funds are “pushed” from the payer’s bank account to the payee’s bank account. This is initiated by the payer, who authorizes their bank to send money directly to the recipient’s account.

How It Works

  1. Initiation: The payer decides to transfer funds and initiates the transaction, typically through their bank’s online platform or mobile app.
  2. Authorization: The payer provides the necessary details (amount, payee’s bank information, etc.) and authorizes their bank to make the transfer.
  3. Processing: The payer’s bank processes this request, sending the transaction through the ACH network.
  4. Transfer: The funds are transferred to the payee’s bank account via the ACH network.
  5. Completion: The payee receives the funds in their account, typically within one to three business days.

The “Push” in ACH Push

  • The term “push” signifies that the transaction is initiated and driven by the sender of the funds, not the recipient. The sender controls the timing and amount of the transfer.

Users of ACH Push

  • Individuals: For personal transfers, bill payments, or sending money to family and friends.
  • Businesses: For payroll, vendor payments, and other business-to-business transactions.
  • Government Entities: For tax refunds, social security payments, and other disbursements.

Pros and Cons


  1. Control: The sender has full control over the timing and amount of the transfer.
  2. Security: ACH pushes are secure, reducing the risk of fraud compared to checks.
  3. Convenience: Easy to set up and execute, often through online banking.
  4. Cost-Effective: Typically lower fees compared to wire transfers.


  1. Processing Time: Can take a few days to complete, slower than instant payment methods.
  2. Limited International Reach: Primarily a domestic service in the U.S.
  3. Information Requirement: Requires accurate recipient banking details.

Examples of ACH Push Usage

  1. Payroll: A company uses ACH push to transfer salaries to its employees’ bank accounts. The company initiates the transaction, pushing funds to each employee on payday.
  2. Rent Payment: A tenant sets up an ACH push to pay their monthly rent. They initiate a transfer from their account to their landlord’s account on the first of each month.

These examples illustrate the practical applications of ACH push transactions in both personal and business contexts.

This page was last updated on December 24, 2023.

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