Is ACH safer than wire payments or checks?
Explore the safety of ACH payments, wire transfers, and checks. Compare security features, risks, and best practices to determine the safest payment method for you.
Are you using paper checks to pay your vendors or to get paid?
Although Electronic Fund Transfer (EFT) methods like ACH and wire have been in use for decades, many businesses still rely on paper checks to transfer money to other businesses. In 2023, over 3 billion commercial checks were processed through the Federal Reserve.
Why are paper checks still with us, even though there are faster and more convenient digital alternatives—not to mention the benefits that using ACH offers? Firstly, unlike digital payments, paper checks are tangible. For many people, the physicality of a check makes it feel safer and more trustworthy.
And secondly, old habits die hard.
Humans are apprehensive about change, and checks have long been a familiar and comfortable payment method.
But are checks really more secure, or do they only offer a sense of security? And how safe is a wire transfer? Let’s explore paper check, ACH, and wire payments, and discuss which payment method provides better security and protection for B2B payments and for your business.
Most businesses experience payment fraud attempts
According to the 2025 AFP Payments Fraud and Control Survey Report, 79% of organizations experienced payment fraud in 2024. 63% of companies reported payment fraud attributed to checks.
That’s not to say that other payment types are invulnerable. Wire transfers fraud cases were also reported by 63% of organizations, while ACH credit fraud came in at 50%.
Considering these numbers, business owners should take every precaution to protect their payments. This includes choosing a payment method that offers the best balance between speed, convenience, cost, and security.
So, which payment method offers the best protection, and why?
Are checks safe?
Checks include protection measures that make it harder to tamper with them, like a security screen, warning box, padlock icon, chemical sensitive paper, fluorescent fibers, erasure protection, and a microprint signature line.
While these security features do make life much harder for fraudsters, checks are still exposed to several types of fraud activities and risks.
Check theft
At the end of the day, checks are physical pieces of paper, so they can easily be misplaced, lost, or stolen. Forgery is also a huge problem, especially as forgery techniques and tools become more sophisticated.
Thieves don’t even have to challenge themselves by stealing directly from you. They can simply steal your mail at any point on its delivery route. According to the AFP report cited above, more than 23% of organizations reported payment fraud due to interference with the US Postal Service.
Having your banking details exposed and used in scams
Your banking details (including account number and routing number) are printed on your checks, which means that this sensitive information is out there for anyone to see. A scammer can use your banking details in different ways. For example, a demand draft is when an individual is authorized to withdraw from your checking account without a signature. This is a common bank scam in payment fraud cases.
What protection do banks offer against check fraud?
Banks offer different services for business owners that can increase your check security.
For example, Positive Pay automates fraud detection by matching checks presented for payment with a list of checks your business issued before. If a check’s details do not correspond with the list, this raises a red flag, and the bank contacts you to approve the payment. Most banks charge a fee for the Positive Pay service.
Additionally, banks are required to reimburse you if they accept an altered or forged check with your name on it. However, the bank can refuse to compensate you by claiming that you contributed to the alteration or forgery because you didn’t exercise ordinary care.
The recipient of a stolen or forged check is also exposed to fraud penalties. The bank can refuse to honor the transaction, close your account or freeze your transactions, and can even hold you accountable for any funds you withdrew with the check.
Opt for business checks, as they’re safer than personal checks
Business checks can provide an added layer to the standard protection that comes with personal checks, including security features like anti-copy technology, watermarks, holograms, and thermochromic ink. However, business checks are still pieces of paper like personal checks. So while they’re harder to forge, they can still be misplaced or stolen.
Are wire transfers safe?
Wire transfers are transactions initiated by authorized personnel between two banks or financial institutions. Is wiring money safe? Well, wire payments are considered more secure than sending a check in the mail. However they’re still vulnerable to fraud.
Most wire scams involve the scammer baiting you into action. They’ll either try to convince you to send them money of your own volition (baiting attacks) or give them access to your computer (phishing attacks), so they can install malware and extract your online bank account details.
Can wire transfers be canceled?
Wire transfers are almost instantaneous, making them harder to stop. This makes them especially risky, as your chances of getting back lost funds is very low.
In the case of a remittance transfer (a wire transfer to a recipient abroad), you will have up to 30 minutes to cancel the wire transfer and get your funds back, but only if the recipient still hasn’t picked up the funds or deposited them into their account. If they have, you can probably say “bon voyage” to your money.
No such protection exists in cases of domestic wire transfers, and banks usually state in their client agreements that you can’t change or cancel a wire transfer.
Safety tips for wire transfers
Are wire transfers safe for seller or buyer payments? They are fairly safe, but can be made even safer if you follow these steps:
- Educate yourself and your employees on common wire transfer scams and safety protocols. Most scams are infuriatingly simple and involve the scammer getting you to send them money under false pretense or a fabricated identity. Once you know how to spot the scams, you’ll be able to avoid them.
- Be on the lookout for BEC (Business Email Compromise) scams and phishing attempts. This is a common scam where you get an email from a fraudster using a vendor address you know and trust, asking you to click a link attached to the email to transfer money. You unknowingly download malware on your computer by clicking it, giving the scammer access to your financial account data and passwords, which they then use to wire money out of your bank account.
- If you receive any unusual emails from a vendor, contact them immediately before clicking any links.
- Use a reputable antivirus and malware software, and make sure it is kept up to date.
When to use each method
Wondering how long it takes to send an ACH payment? When considering whether to use ACH, wire, or check payments, you need to consider four factors: speed, convenience, cost, and security. The right payment method will depend on a balance of these factors, as well as the type of payment, the recipient, and amount.
Let’s take a look at the use cases for ACH, wire, and checks, so you can make the right decision for each transaction:
Use ACH for:
ACH payments are fast, convenient, and cheaper than checks or wire payments. They are commonly used for:
- Payroll: Periodic payments for employee salaries
- Vendor payments: Payments for suppliers and contractors
- Recurring payments: Recurring payments to vendors, or memberships and subscription payments
- Utilities and rent: Regular business expense payments
- Tax payments: Payments for federal, state, and local tax obligations
- Loan payments: Recurring repayments for business loans
Use wire transfer for:
Wire transfers are relatively fast, especially if the payment is between accounts at the same financial institution. They are especially useful for high-value payments, including:
- Large transactions: Transfer significant amounts of money quickly and securely
- International payments: A good option for sending funds overseas to vendors or partners
- Real estate transactions: Large payments for property purchases or investments
- Vendor payments: For large or international payments, or for suppliers who require immediate confirmation of funds
Use checks for:
While checks are the least secure, slowest, and most expensive payment method, they may be a good choice in certain instances, such as:
- Vendor payments: Suppliers who prefer traditional check payments
- One-time payments: For an infrequent or irregular expense
- Non-urgent payments: If the funds are not needed urgently, a check may be a convenient way to pay
- Face-to-face payments: If the payee can take the check immediately so you don’t need to send it by mail
- Rent: Landlords who prefer checks
- Gifts and donations: A simple way to send charitable contributions or gifts to organizations
Is ACH safer than wire and check?
ACH is becoming more and more popular for invoice payments with every passing year. In 2024, ACH payments were valued at $33.56 billion, an increase from $26 billion in 2020.
ACH payments are a secure way to transfer funds and are considered very safe. ACH is regulated by the federal government and managed by Nacha, which facilitates and supervises the ACH network. ACH fraud and error are very uncommon, thanks to Nacha’s strict oversight and security regulations.
If fraud does happen, wire transfers leave you far more exposed than ACH. Wire transfers have only a brief 30-minute window to stop the transfer and are irreversible once the recipient collects the funds. And wire transfer payments were the most vulnerable to BEC fraud (Business Email Compromise) in 2024, surpassing ACH fraud. Nacha provides a 60-day grace period to cancel unauthorized or erroneous ACH payments, even if the funds have already been transferred.
Keep in mind that ACH, like wire transfer and any other electronic funds transfer method, is susceptible to the same phishing scams. You should still be careful with your information and be on the lookout for possible scam attempts.
Regardless of the payment method you choose, your first and best line of defense for the financial safety of your business is knowledge and vigilance.
Safety tips for all payment methods
Whether using ACH, check, wire, or a combination of payment methods, make safety a top priority and prevent potential fraud with these common sense safety tips:
- Verify payment and recipient details: Always double-check the payee details before processing payments. If you use ACH, you can choose ACH Positive Pay, so you only pay approved vendors with predefined maximum payment amounts to avoid errors.
- Monitor accounts payable regularly: Payments should be tracked and monitored to detect any unauthorized activity or errors. Check account statements and transaction histories on a regular basis and stay alert for any irregularities.
- Educate employees: Train staff to recognize phishing attacks and other attempts by scammers to trick them into giving up sensitive payment data.
- Update security protocols and learn from mistakes: While uncommon, payment fraud may happen to you. Regularly review and update your security measures to protect against new threats and to avoid making the same mistakes.
- Use a secure payments platform: A comprehensive payments platform like Melio provides built-in security measures and safe ACH payments so you’re one step ahead of fraudsters. In addition, Melio makes it much easier to track and monitor payments so you can quickly catch and prevent payment fraud and errors.
Are you looking for a secure, user-friendly invoice payments platform that lets you pay vendors by ACH, wire, or check, and tracks and manages all those payments in one place? Give Melio a try, and see how your accounts payable can become so much smoother, safer, and in control.
*This guide is intended for informational purposes only and is not intended as financial advice.
**Melio does not provide legal, tax or accounting advice, and you should consult with a professional advisor before making any financial decisions.
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