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When you receive your paycheck via direct deposit or automatically pay your electric bill, you are using the ACH network, and you probably didn't even know it. The system moves trillions of dollars a year within the United States, but there is something very few people know before trying to send money abroad: ACH is a strictly domestic network.
An ACH transfer can only move money between bank accounts within the United States. To send money to Mexico, Guatemala, Honduras, or other Latin American countries, you need a different method: a wire transfer or a WhatsApp remittance service like Félix.
What is an ACH transfer and how does it work within the U.S.?
ACH stands for Automated Clearing House, the electronic payment network that connects banks and credit unions in the United States. This network is operated by Nacha (formerly known as NACHA, The Electronic Payments Association) and processes hundreds of millions of transactions each year.
When someone makes an ACH transfer, the process happens like this:
- The originating bank sends a file with payment instructions to the ACH network.
- The ACH network transmits that file to the receiving bank.
- The receiving bank credits the amount to the recipient's account.
To identify accounts in an ACH transaction, the 9-digit ABA routing number is used along with the account number. If you want to know how to find your routing number, you can check this article about the bank routing number.
The most common uses for ACH transfers in the U.S.
- Direct deposit of salary (paycheck)
- Payment of recurring bills (rent, utilities, mortgage)
- Transfers between your own accounts at different banks
- P2P platforms like Venmo and Zelle, which use ACH rails to settle payments
How long ACH transfers take
Nacha offers three processing speeds: Same-Day ACH, next business day, and the standard 1 to 3 business day timeframe. The available speed depends on the bank and the type of transaction. Payroll payments, for example, are usually processed one or two business days in advance.
Banks can set their own limits on the amount per ACH transfer. Some allow up to $25,000 per transaction; others have lower caps. Check directly with your bank if you need to move large amounts.
What is the difference between an ACH transfer and a wire transfer?
This is the most common confusion. Both are electronic transfers, but they operate on different networks with very different costs and timelines.
| Aspect | ACH transfer | Wire transfer |
|---|---|---|
| Network | ACH (operated by Nacha) | SWIFT / Fedwire |
| Scope | Only within the U.S. | Domestic and international |
| Speed | 1-3 business days (or same day) | Same day (if sent before the cutoff time) |
| Typical cost to send | Free or very low | $25-$50 at U.S. banks (check the exact fee with your bank) |
| Requires a bank account | Yes (sender and receiver) | Yes (sender; receiver can be a bank or correspondent) |
| Reversible | In some cases | Practically impossible to reverse |
| Ideal for | Recurring payments, payroll, domestic P2P | Urgent payments, large amounts, international |
For a more detailed comparison between both methods, you can read wire transfer vs. bank transfer. If you need to send money via an international wire transfer, the receiving bank will use a SWIFT code to identify the destination institution.
Why are ACH transfers not suitable for sending money to Latin America?
The ACH network was designed to operate within the borders of the United States. In practice, this means that if you try to make an "ACH transfer to Mexico" or any other country in Latin America, your bank simply cannot execute it directly through that network.
Some U.S. banks offer this option under the name "International ACH Transfer" (IAT), but its availability is limited, delivery times can take several business days, and fees vary considerably depending on the institution.
The real options for sending money to Mexico, Guatemala, Honduras, El Salvador, Nicaragua, Colombia, the Dominican Republic, Ecuador, Peru, and other Latin American countries are:
International wire transfer: uses the SWIFT network to connect banks in different countries. It is reliable but expensive: U.S. banks charge between $25 and $50 per transfer (check the exact fee with your bank), plus potential fees from intermediary and receiving banks. The exchange rate applied by banks is also usually less favorable than the market rate.
Remittance app: platforms specialized in international transfers that process the payment in the U.S. and credit the funds in the destination country. They are faster and considerably cheaper than a wire transfer for these types of transactions.
How to send money to Latin America with Félix, without a bank and via WhatsApp?
Félix is a remittance service that operates entirely via WhatsApp. You don't need to open a separate bank account or download any app: you use the same WhatsApp you already have installed.
The process is simple: you start a conversation with Félix on WhatsApp, specify the amount and the recipient, and pay with a U.S. debit or credit card (except American Express), or in cash at stores like Walmart, 7-Eleven, CVS, or Walgreens by generating a barcode from the chat.
The Fee for a bank deposit starts at $2.99, depending on the destination country, and the money arrives in minutes in most cases. Félix operates with Mexico, Guatemala, Honduras, El Salvador, Nicaragua, Colombia, the Dominican Republic, Costa Rica, Ecuador, and Peru.
Sending money to Latin America with Félix Pago costs from $2.99 in fees and, in most cases, arrives in minutes to the recipient's bank, with no need for your own bank account or forms.
To see how Félix compares to other services in terms of cost, speed, and coverage, check the comparison of money transfer services to Mexico.
Frequently asked questions
Can I use ACH to send money to Mexico or Central America?
Not directly. The U.S. ACH network operates only within U.S. territory. To send money to Mexico, Guatemala, Honduras, or other Latin American countries, you need an international wire transfer or a specialized remittance service like Félix, which works via WhatsApp.
Do Venmo and Zelle use ACH?
Yes, in general. Zelle settles payments between participating banks using ACH rails, although for the user, the money appears available almost immediately. Venmo also uses ACH to move funds between its platform and users' bank accounts. Neither of these platforms allows international transfers.
What do I need to receive an ACH transfer?
You need a bank or credit union account in the U.S. The sender needs your bank routing number (9 digits) and your account number. Without a U.S. bank account, you cannot receive payments via ACH.
Is ACH cheaper than a wire transfer?
Yes, for domestic payments within the U.S. ACH transfers are usually free or very low-cost. Domestic wire transfers can cost between $15 and $30 at many banks, and international ones between $25 and $50. For international transfers, a remittance service like Félix is usually cheaper than both options.
Sources and references
Nacha (National Automated Clearinghouse Association)
- Nacha: What is ACH? (Official definition of the ACH network and transaction volume statistics.)
- Nacha: Same Day ACH (Rules and deadlines for same-day ACH payment processing.)
Related content
- Wire transfer vs. bank transfer: what is the difference?
- How is a bank transfer made from the United States to Mexico?
- Bank routing number: what is it and how to identify it?
- SWIFT code: what is it and what is it used for?
- Compare the most popular money transfer services to Mexico
- Fee
- Exchange rate
- International bank transfer
