All 21 Payment Runs questions
More in Payment Runs
How does an early-payment discount decision get evaluated? What controls should surround a payment run to prevent errors and fraud? What is a payment proposal (pre-run) and how is it reviewed? How are supplier credits and deductions applied within a payment run? How does a purchasing card (P-card) program change AP payment processing? What is a virtual card and why do companies use it for payments? How are payment holds and blocks managed within the run process? How do payment runs support cash flow and working capital management? What is positive pay and how does it prevent payment fraud? How are cross-border/foreign-currency payments handled in a payment run?
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Accounts Payable & Receivable › Payment Runs

What is the difference between ACH, wire, and check payments in terms of risk and cost?

Intermediate

Answer

ACH/BACS batch transfers are low-cost and reversible within limits, suited to routine bulk payments. Wires are fast, final (hard to recall), and higher-cost—used for urgent or high-value/cross-border payments, but attractive to fraudsters because they're irreversible. Checks are cheap to issue but slow and the most exposed to alteration and theft.
Real-world example A fraudulent invoice pushed for urgent wire payment is scrutinized precisely because wires can't be clawed back.

Common follow-ups: Why are wires a fraud target? | When is ACH preferred over wire?

Payment Runs Vendor Management Reconciliations
All 21 Payment Runs questions