Routing number or SWIFT code? Wire or ACH? Is Fedwire a bank? These are among the most searched questions about US payments, and the confusion is understandable: the three networks do different jobs and use different identifiers. Here is the map.
ACH: the everyday US network
ACH, the Automated Clearing House, is the network US banks use for ordinary payments: salaries, supplier invoices, platform payouts, direct debits. Payments are processed in batches. To receive an ACH payment you need a US routing number and account number. It is the cheapest and most common way to be paid in the United States.
Fedwire: the same-day US wire
Fedwire is the real-time wire system operated by the US Federal Reserve. It is used for high-value or time-sensitive payments within the United States. Like ACH, it uses the routing number and account number. It is final and fast, and typically costs more than ACH.
SWIFT: the international messaging network
SWIFT is not a US network: it is the global messaging system banks use to instruct international transfers. A SWIFT transfer in dollars can pass through one or more correspondent banks, each of which may take a fee, and can take several days. It is identified by a BIC or SWIFT code, not by a routing number.
Which one to ask for
- The payer is in the United States and the amount is ordinary: ACH.
- The payer is in the United States and the amount is large or urgent: Fedwire.
- The payer is outside the United States: SWIFT.
What this means for a US dollar account held abroad
With a US dollar account from iSwiss Pay you have all three: routing and account number for ACH and Fedwire, and SWIFT for international transfers. You choose the rail according to where the payer is and how fast the money needs to move.