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This article is for educational purposes and does not constitute financial, legal or tax advice. For specific advice applicable to your business, please contact a professional.
The ability to move money quickly is critical for any business. That’s where business bank transfers come in. But what is a bank transfer? How do bank transfers work? And are there limits on how much you can transfer from one bank to another?
Learn how bank transfers work, their limits, and how to move money between accounts quickly to help you better manage your business finances to accept payments from customers, pay taxes associated with your business, or pay suppliers.
What is a bank transfer?
A bank transfer is a payment method that allows consumers and business owners to send and receive money securely, efficiently, and without the need for physical checks or cash.
If you use Square for your business, there are several types of bank transfers available:
- Standard next-business-day transfer: When you activate your Square Point of Sale account, link a bank account, and start to accept payments, funds will transfer on a standard schedule, from 36 hours to one to two business days within a transaction.
- Instant transfer: If instant transfers are available on your account, you can send up to $10,000 to your linked, external bank account 24 hours a day, seven days a week, for a 1.75% fee per transfer. Instant transfers require a minimum balance of $25.
- Same-day transfer: Same-day transfers are also available for a 1.75% fee per transfer and are similar to instant transfers. These transfers are available to transfer your funds at close of day on an automated schedule you choose. You can send multiple payments as large as $10,000 with same-day transfers, but payments above that amount must be sent by next-business-day transfer.
Square Checking1 offers a checking account that gives you instant access to your sales with Square. You can use its account and routing numbers to allow third parties to debit your Square balance using ACH at no additional cost to complete business bank transfers to cover bills or expenses.
Maximize money movement with Square Checking
Managing cash flow is one of the biggest challenges for small businesses. Delays in accessing funds, juggling tools, or paying extra fees to move money can create unnecessary friction, especially when you need to pay a vendor, restock, or cover a surprise expense.
Square Checking helps solve these challenges by putting your money to work the moment you make a sale. Here’s how it keeps your cash flowing — quickly, securely, and without added cost:
- Move Money Instantly — and for Free: Your sales are deposited directly into your Square Checking account, so there’s no waiting period or transfer fee. Set aside a portion of income into Square Savings, then pull it back to Checking anytime — instantly, 24/7.
- Spend Immediately: Use your Square Debit Card to pay for supplies, inventory, or bills the moment a sale hits — no need to move money to an external bank first.
- Simplify Your Finances: With Square, everything stays connected — sales, spending, transfers, and savings — helping you save time, reduce complexity, and stay in control.
How does a bank transfer work for businesses?
A business bank transfer can process immediately or in a few days, depending on the type of bank transfer you select, but, regardless of type, all bank transfers work through a similar means:
1. The business initiates the transfer via online banking, a mobile app, or in-person at a bank branch by entering the recipient’s details (name, account number, and routing number) and the amount of funds to be sent.
2. The bank submits the transaction through a payment network:
- ACH transfers are processed in batches by the Automated Clearing House, usually taking 1–3 business days.
- Wire transfers are sent in real-time via systems like Fedwire or SWIFT, often settling the same day.
- Instant transfers are real-time electronic payments that move money between accounts within seconds.
3. Your bank settles the transfer by debiting your bank account. Then the funds move through the chosen network to the recipient’s bank, which credits the recipient’s bank account, completing the transfer.
4. Both parties to the transaction will receive confirmation via email, SMS, or bank alerts along with a reference number for tracking.
ACH business bank transfers are slower but cheaper, while instant and wire transfers are faster but may have higher fees.
Types of bank transfers
There are different types of bank transfers.The kind of business bank transfer you use will depend on your needs.
Bank Debit Transfers
A bank debit transfer is a payment initiated by the payee (like a vendor, for example) to withdraw funds directly from your business bank account. Businesses typically use bank debit transfers for recurring bills, subscriptions, or automated payments.
Bank Credit Transfers
A bank credit transfer is a payment initiated by the payer (your business, for example) to send funds directly to a recipient’s account. Businesses typically use bank credit transfers for payroll, supplier payments, or one-time transfers.
Bank Redirects
A bank redirect (or payment redirection) is a process where payment flows are redirected through third-party platforms or interfaces. Essentially, a user (like your business) authorizes a third-party service like Square2 to redirect a transaction away from the bank’s native system to complete the payment.
Types of domestic bank transfers
There are two main types of domestic business bank transfers: ACH and wire. While ACH transfers and wire transfers are both types of electronic funds transfers (EFTs), there are key differences between an ACH bank transfer and a wire transfer.
ACH Transfers
ACH bank transfers allow you to move money quickly and easily as a business owner. Business owners often use ACH payments for electronic payments, money transfers, and direct deposits. ACH provides for the transfer of money directly from one account to another without using other means of payment, such as paper checks, credit card networks, wire transfers, or cash.
ACH transfers are processed in batches through a centralized U.S. network. They are cost-effective, secure, and ideal for recurring or high-volume transactions. There are two types of ACH transfers: an ACH credit (where the payer initiates the transaction) and an ACH debit (where the payee initiates the transaction).
Wire Transfers
Wire transfers are often thought of as electronic checks — as soon as a transfer is started, it is taken out of your account. Unlike a bank transfer, a wire transfer doesn’t require bank accounts to be linked to one another in order to transfer funds. These types of transfers often come with a fee.
Key differences between ACH transfers and wire transfers
|
ACH Transfer |
Wire Transfer |
|
|
When to Use |
Recurring, high-volume, non-urgent payments |
Urgent, high-value, or international payments |
|
Why Choose? |
Low cost, automated, ideal for predictable cash flow |
Speed, guaranteed settlement, large transactions |
|
Speed |
1-3 business days (same-day ACH possible for a fee) |
Same day (domestic), 1-2 days (international) |
|
Cost |
0.20– 0.20–1.50 per transaction (often free for receivers) |
15– 15–50 (domestic), 30– 30–80+ (international) |
|
Security |
Secure but batch-processed (NACHA rules protect against fraud) |
Highly secure (real-time, bank-verified) |
|
Risks |
Slower processing, returns/errors possible (e.g., incorrect details) |
Irreversible; higher fraud risk for scams |
|
Use Cases |
Payroll, subscriptions, utility bills, vendor payments |
Emergency supplier payments, large transactions (like property purchases) |
|
Use cases |
– ACH Credit: Employer sends payroll. – ACH Debit: Vendor pulls monthly fees. |
– Domestic Wire: Urgent high cost supplier payment. – SWIFT Wire: Paying an overseas manufacturer. |
Why do business owners use bank transfers?
Business bank transfers are a quick and easy way to send or receive money, so many business owners use them in order to move funds between accounts, pay taxes, or pay suppliers. Bank transfers are an alternative to paper checks or cash. They can make payments efficient for large amounts since they can be processed electronically. Banks also offer a record of transactions, so business owners can check which payments were made at what time or even set payments automatically. Finally, unlike some alternatives to moving funds, bank transfers can help build credit.
Are there bank transfer limits?
When it comes to transferring money to any external bank account, the dollar amount limit — as well as the speed of transfer — will depend on the banks involved in the transfer and the type of transfer itself. Here are some common bank transfer limits and Square transfer limits.
Bank transfer limits6
| Type of transfer | Transfer limit |
|---|---|
| ACH Same Day transfer | Up to $1,000,000 |
| Bank of America Corp. | $3,500 per day or $10,000 per week |
| JPMorgan Chase & Co. | Up to $25,000 per day |
| Citigroup Inc. Standard ACH | Up to $10,000 per day |
| Capital One Financial Corp. | Up to $10,000 per day or $25,000 per month |
Square transfer limits
| Type of transfer | Transfer limit | Speed of transfer |
|---|---|---|
| Standard next business day | None | 1 to 2 business days. |
| Instant transfer | Up to $10,000 | Instantly 24 hours a day, 7 days a week. |
| Same-day transfer | Up to $10,000, however, your transfers can be sent in more than one batch as long as no individual transaction is greater than $10,000. | Daily at 5:15 p.m. PT / 8:15 p.m. ET or 15 minutes after your close-of-day time. |
Bank transfer benefits and downsides for businesses
| Bank Transfer Benefits | Bank Transfer Downsides |
| Lower transaction costs — Especially with ACH, which reduces fees for payroll, vendor payments, and recurring bills. | Payment errors — Mistyped account or routing numbers can cause delays or misdirected funds. |
| Enhanced security — Encryption and fraud monitoring help minimize risks compared to checks or manual payments. | Processing delays — ACH transfers may take 1–3 business days; wires can be delayed by banking hours or holidays. |
| Improved cash flow management — Schedule recurring payments, track activity in real time, and avoid missed due dates. | Limited reversibility — Wire transfers can’t be recalled once sent, and ACH reversals aren’t always guaranteed. |
| Global reach — Wire transfers and services like SWIFT or SEPA support international payments to suppliers or partners. | Limited visibility across systems — Using external accounts can make it harder to track payments, reconcile data, or manage cash flow efficiently. |
Which money movement option works best?
Every business faces different payment needs — and different obstacles. Whether it’s the cost of sending funds, the speed of access, or simply the hassle of managing it all, Square Banking is built to reduce that friction.
- Need funds fast? Square Checking and Square Debit give you instant, fee-free access to your sales — so you can spend without waiting.
- Sending recurring payments? ACH transfers offer a low-cost solution for bills, payroll, or vendor payments.
- Paying internationally? Wire transfers remain the best option for cross-border, high-value transactions.
With Square, you can manage it all from one place — and choose the right option for every situation, without jumping through hoops or leaving the platform.
Is a bank transfer safe?
Bank transfers are considered a safe and secure method of payment, as there is proven identity verification associated with the transfer itself. However, it is critical to ensure that you know the person to whom you are sending the money. Whether you are initiating a bank transfer to an external bank account or to a different account within your own bank, double check the name of the recipient. Once a transfer is initiated, it cannot be canceled. As with other digital banking functionalities, the alternative could be less secure. Transferring funds to a bank account in cash form includes the steps for transporting money yourself and any security risks involved with moving that money physically from one location to another.
By leveraging bank transfers, businesses gain predictability, scalability, and better control over their finances, whether paying employees, settling invoices, or expanding into new markets.
1. Block, Inc. is a financial services platform and not an FDIC-insured bank. FDIC deposit insurance coverage only protects against the failure of an FDIC-insured deposit institution. If you have a Square Checking account, up to $250,000 of your balance may be covered by FDIC insurance on a pass-through basis through Sutton Bank, Member FDIC, subject to aggregation of the account holder’s funds held at Sutton Bank and if certain conditions have been met. See Terms and Conditions.
¹ Instant availability of Square payments. Funds generated through Square’s payment processing services are generally available in the Square Checking account balance immediately after a payment is processed. Fund availability times may vary due to technical issues.
ACH transfer fund availability: Instant availability does not apply to funds added to the Square Checking account via ACH transfer. ACH credit transfers to your account may take 1–2 business days.
² Square Debit Card is issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard.
³ Instant transfer requires a linked bank account or supported debit card and costs a fee per transfer. Funds are subject to your bank’s availability schedule. Minimum amount is $25 and maximum is $10,000 in a single transfer. New Square sellers may be limited to $2,000 per day. Fund availability times may vary due to technical issues.
⁴ With early deposit access, Block, Inc. may make incoming electronic direct deposits made through ACH available for up to two days before the scheduled payment date. Not all direct deposits are eligible. Early availability of direct deposits is not guaranteed and may vary from deposit to deposit. Early deposit access is automatic and there is no fee.
5. Cash deposited into your Square Checking account is generally available in your checking account balance immediately after a deposit is processed. Fund availability times may vary due to technical issues.
VanillaDirect Pay is provided by InComm Financial Services California, Inc. and by InComm Financial Services, Inc. (NMLS# 912772), which is licensed as a Money Transmitter by the New York State Department of Financial Services. Terms and conditions apply.
2. New Square sellers may be limited to $2,000 per day. Funds generated through Square payment processing services are generally available in the Square balance immediately after a payment is processed. Funds are subject to your bank’s availability schedule but are generally available in your bank account within 20 minutes of initiating an instant transfer.
