What is ACH Transfer?
ACH stands for Automated Clearing House, the US network that moves money between American bank accounts in batches. It handles payroll, bill payments and supplier payments for millions of businesses. ACH payments are cheap, often free, for the sender, and they typically settle in one to a few business days, with same-day options available in some cases. They work only between US accounts, using a routing number and account number.
An Indian exporter cannot receive ACH directly into an Indian bank account. Instead, exporters use a US virtual account from a payment provider or bank, which receives the ACH and then forwards the funds to India.
Why it matters for exporters
US clients often prefer ACH over an international wire because it is cheaper and fits their routine accounts payable process. Offering US account details through a virtual account can therefore get you paid faster and with fewer deductions than a SWIFT wire with intermediary charges.
For your compliance, the route does not change the basics. The invoice still goes on your EDF, due within 30 days from the end of the invoice month, and realisation is still measured against the 9-month period for services. The money that reaches your Indian account will come from the provider, not from the client directly, so keep the provider's statement or advice showing which client and invoice each credit relates to, and confirm with your AD bank how it wants those credits evidenced.
Example
Maple Leaf Code, an LLP in Indore, invoices a Denver company USD 4,200 on 6 November 2026. The client pays by ACH to Maple Leaf's US virtual account on 4 December. The provider converts and credits ₹3,51,200 to the LLP's current account on 8 December, with an advice quoting invoice MLC/057. The invoice appears on the November EDF, which Maple Leaf filed by 30 December using the EDF form tool.
Common confusion
ACH is not the same as a wire transfer; wires are faster, individual payments, usually costlier. See EDF when you get paid through US ACH via virtual accounts.