Difference Between ACH and RTGS (With Table)

Money transfer is a big help for people to transfer funds without getting into a lot of chaos. In this world, industrious people are always bustling. The introduction of ACH and RTGS has made the money transfer easier for all the people who have got their hands full for various work.

Both ACH and RTGS work for transferring the funds securely, but they both require a different amount of time for the money transfers. The RTGS is renowned for its on-the-spot or immediate fund transferring process. On the other hand, ACH is a good way to transfer money in sets or batches.


The main difference between RTGS and ACH is that they both transfer funds using different systems and processes. The Automated Clearing House uses its network to transfer the fund or money in 2 to 5 business days. On the other hand, RTGS is an easy way to transfer funds in just 24 hours or before 24 hours, depending on the server of the bank.


The ACH money transfer process may bring some fund settlement risks. This money transfer process is mainly done for payment that is not required to be done in a hurry. All the monthly payments can be done using ACH as it would be a convenient way for transferring money in a few business days.

The RTGS money transfer can be done electronically as it doesn’t require any physical exchange of funds. The adjustment of funds in the case of RTGS would be done by the Central bank in the accounts of sender and recipient.

Comparison Table Between ACH and RTGS

Introduction    Automatic Clearing House is used for transferring funds in a few sets.              In the Real-Time Gross Settlement, the money is transferred instantly or in one go.
Payment Types       The ACH money transfer would delay the fund transfer.        The RTGS process is known for the immediate or faster transfer of funds.
Money Transfer Time Taken                The ACH would not take around 24 to 48 hours for transferring the money. The RTGS process would not take more than 24 hours for fund transfer.
Net Balance Consideration       In the ACH money transfer process, the net balance of the accounts is taken into consideration.     In the case of RTGS, the net balance has no role to play in the fund transfer process.
Convenient The ACH money transfer payments are more convenient and appropriate for repetitious payments.The RTGS money transfer process is not meant for repetitious payments but would be convenient for one-time payments.

What is ACH?

The United Nations of America in 1970 tried to find a money transfer system that would prevent repetitive bank visits, written checks, and bills. The introduction of the instant or immediate money transfer system was done by the United Nations of America. The system then started to develop and came as a good way to clear funds electronically.

NACHA (National Automated Clearing House system) is the main authority to control and handle the ACH money transfer channel. Previously, transferring money in different sectors was extremely herculean due to less availability of resources. To solve all these issues, ACH came as a savior for repetitious fund transfer with fewer settlement risks.

The ACH is a very convenient way to transfer funds in a few days with the help of a network under the control of NACHA. The ACH fund transfer system is used for providing pensions and salaries to people. When you receive the interest from banks, then it is provided by following the ACH money transfer system.

The money in the ACH fund transfer is mainly sent from one person to another in 2 to 5 days. The person may receive faster payments if the money is processed in the business days.

What is RTGS?

The RTGS money transfer could be done by people that want to transfer a huge amount of money immediately. People need to pay some RTGS charges to the bank for sending the money. The charge for doing RTGS would be fixed by the bank depending on the amount to be transferred.

The RTGS fund transfer system is extremely convenient for avoiding the chaos of delayed payments. The net settlement system has no effects on the RTGS transaction as they are independent fund transfer systems. Digital fraud can happen in the case of any type of transaction. Data theft is a huge settlement risk that may come in the RTGS fund transfer process. Economic and market growth requires a hassle-free fund transfer system.

Therefore, the introduction of the RTGS fund transfer system made it easier for the bank to support economic growth.

Main Differences Between ACH and RTGS

  1. The RTGS is all about instant or immediate fund transfers, whereas the ACH would transfer the funds in a few business days.
  2. The ACH fund transfer system was developed to deal with the chaos of bank processes, whereas the RTGS fund transfer was introduced to support economic growth and transfer money on an urgent basis.
  3. ACH fund transfer would not be able to transfer the whole amount in just one go, whereas the RTGS fund transfer would be able to clear the whole amount in just one go.
  4. ACH money transfer gets affected by the net balance of the accounts, whereas the RTGS fund transfer has nothing to do with the net balance of the accounts.
  5. The ACH fund transfers system requires no charges or fees for the transaction, whereas the RTGS fund transfer would require some amount of charges or fees for the processing of the transaction.


To satisfy the growing requirement of the people, the banks are providing many fund transaction facilities or systems. People can go for a convenient fund transfer system depending on their needs.

In the modern banking field, fund transfer systems such as RTGS and ACH are renowned for providing secure transactions services to senders and recipients. If someone is looking for a good valuable transaction system, then RTGS can be a great option. People that are looking for a good transaction system for sending high-volume funds can go for ACH.

The main difference between the RTGS and ACH fund transfers is that they deal with different types of payments. Both of these fund transfer systems follow contrasting mechanisms and banking processes for transferring the fund.