When a US client asks "should I send ACH or wire?" most Indian businesses don't know the difference or which one to request. This matters because the two systems work completely differently for cross-border payments.
What Is ACH
ACH (Automated Clearing House) is the US domestic payment network for electronic bank transfers. It handles direct deposits, payroll, and bill payments within the United States.
Key ACH characteristics:
- US domestic only
- Settlement: 1-3 business days (standard ACH) or same-day (same-day ACH)
- Cost to sender: $0-$5 typically
- Requires: US routing number + US bank account number
- Reversible: ACH transactions can be reversed by the sender's bank in certain circumstances
What Is Wire Transfer
Wire transfer (Fedwire in the US) is a same-day US domestic transfer, or SWIFT for international.
Key wire characteristics:
- US domestic wires: same-day settlement, $15-$35 per wire
- International SWIFT wires: 2-5 business days, higher cost
- Irreversible once completed
- Requires: routing + account number (domestic) or SWIFT/BIC + account (international)
The Crucial Point for Indian Businesses Using VBA
With a Playto Pay USD Virtual Bank Account, your US client has a US routing number and US account number. This means they can pay you via:
ACH: Free or near-free for them. Arrives at your VBA in 1-3 business days.
Domestic wire: Costs them $15-$35. Arrives at your VBA same day or next business day.
Both are domestic transfers from the US client's perspective. No international SWIFT wire. No correspondent bank chain. No $25-$45 international wire fee.
ACH vs Wire for Indian Business Use Cases
| Scenario | Recommend | Why |
|---|---|---|
| Monthly retainer ($1K-$5K) | ACH | Free for client, arrives in 1-3 days, no friction |
| Large project invoice (above $10K, time-sensitive) | Wire | Same-day settlement worth the $25 cost |
| First-time client | ACH | Lower friction for them to start |
| Invoice due date tight | Wire | Don't rely on ACH timing if due date is tomorrow |
Why VBA Routing Number Enables ACH (Your Indian Bank SWIFT Can't)
Traditional Indian bank SWIFT accounts cannot receive ACH. ACH is US domestic only. A US client can only send ACH to a US account.
Your Playto Pay USD VBA has a US routing number and account number — which means your US clients can pay you via ACH exactly like they pay any US vendor. Domestically. For free. In 1-3 days.
Playto Pay then converts USD to INR at mid-market rate and credits your Indian bank account daily.
What to Tell US Clients
Include in your invoice:
For USD payments from US accounts:
ACH transfer (free, 1-3 business days):
Account Name: [Your Company Name]
Routing Number: [9-digit ABA routing]
Account Number: [Account number]
Domestic wire (same day, $25 your bank):
Same details as above
Reference: [Invoice number]
Most US clients will choose ACH — it costs them nothing and is as simple as paying any bill online.
FAQ
Can Indian businesses receive ACH payments? Yes, if they have a USD Virtual Bank Account (VBA) with a US routing number. Playto Pay provides USD VBAs to Indian businesses after KYB. US clients can then send ACH (free) or domestic wire to your VBA.
Is ACH or wire better for Indian businesses receiving from US clients? ACH for regular payments (free, 1-3 days). Wire for large urgent payments (same day, $15-$35 sender cost). Both arrive at your Playto Pay USD VBA; you receive INR daily at mid-market rate.
Can US clients send ACH to a traditional Indian bank account? No. ACH is US domestic only. It requires a US routing number and US bank account. Playto Pay USD VBA provides both.