How to buy crypto using a bank transfer (ACH/SEPA)?

Understanding Bank Transfer Methods in Crypto Exchanges

1. ACH transfers are the standard electronic payment system used in the United States, enabling direct movement of funds between a user’s bank account and a crypto exchange’s designated account.

2. SEPA is the equivalent framework across most European Union countries and several non-EU members, supporting euro-denominated transfers with standardized processing times and low or zero fees.

3. Both methods rely on account verification, routing numbers (for ACH), and IBANs (for SEPA), requiring users to input precise banking details before initiating deposits.

4. Unlike card purchases, bank transfers do not involve immediate settlement—processing typically takes one to three business days depending on jurisdiction and exchange policies.

5. Some exchanges restrict SEPA or ACH usage to verified accounts only, enforcing KYC compliance before allowing any fiat onboarding via these rails.

Selecting a Compliant Exchange Supporting Direct Bank Deposits

1. Binance.US permits ACH deposits for eligible U.S. residents after completing identity verification and linking a domestic checking account.

2. Kraken supports both ACH and SEPA, offering tiered deposit limits based on verification level, with SEPA deposits often credited within hours during banking hours.

3. Coinbase allows ACH for U.S. customers and SEPA for EEA users, but enforces strict anti-fraud checks that may delay first-time deposits beyond standard timelines.

4. Bitstamp maintains full SEPA support with no deposit fees, though users must initiate transfers from accounts registered under their verified name to avoid rejection.

5. Crypto.com enables ACH through its U.S. entity but requires users to manually trigger deposits after linking—automatic recurring ACH is not supported.

Step-by-Step Deposit Execution Process

1. Log into the exchange platform and navigate to the “Deposit” or “Fiat & Spot Wallet” section.

2. Select the desired fiat currency (e.g., USD or EUR) and choose the corresponding bank transfer method (ACH or SEPA).

3. Enter or confirm banking credentials: for ACH, provide routing and account numbers; for SEPA, supply IBAN and BIC/SWIFT code.

4. Initiate the outbound transfer from your personal bank interface using the exact reference number or description provided by the exchange—omitting this may result in untraceable deposits.

5. Monitor the deposit status dashboard; funds appear as “pending” until cleared by the exchange’s finance team, which may require manual reconciliation for large or irregular amounts.

Fees, Limits, and Timing Considerations

1. Most major exchanges absorb SEPA and ACH deposit fees, though some regional platforms impose flat charges of €0.25–$1.50 per transaction.

2. Daily and monthly deposit caps vary widely: Kraken allows up to $50,000 daily for Tier 3 verified users, while Bitstamp caps SEPA deposits at €20,000 per day without prior notice.

3. Weekend and holiday transfers extend processing windows—SEPA deposits initiated Friday after 4 PM CET may not reflect until Tuesday.

4. ACH transfers processed outside standard banking hours (9 AM–5 PM ET) are queued for next-business-day execution, even if submitted online.

5. Rejected transfers due to mismatched names or insufficient funds trigger mandatory re-verification before retrying, halting further deposit attempts until resolved.

Security Protocols and Fraud Prevention Measures

1. Exchanges enforce two-factor authentication (2FA) before permitting any bank linkage changes or deposit initiations.

2. All ACH/SEPA deposit addresses are tied exclusively to the user’s verified legal name—third-party or business account transfers are systematically declined.

3. Suspicious activity triggers automatic holds: rapid-fire small deposits followed by large withdrawals may freeze the fiat wallet pending manual review.

4. Transaction descriptions must include unique identifiers assigned by the exchange; generic labels like “crypto purchase” cause delays or loss of funds.

5. Withdrawals back to the same bank account used for deposit are permitted only after 72 hours from first successful deposit, preventing instant round-trip laundering attempts.

Frequently Asked Questions

Q: Can I use a joint bank account for ACH deposits?Yes, but the exchange must verify all named account holders, and each person must complete KYC individually before the joint account can be linked.

Q: Why did my SEPA deposit show as “received” but remain unavailable for trading?This indicates the exchange has acknowledged the incoming wire but has not yet completed internal compliance validation—typically resolved within 24 business hours.

Q: Do I need to pay taxes on the fiat amount deposited before buying crypto?No tax event occurs upon depositing fiat; taxation applies only upon disposal of crypto assets or receipt of income denominated in digital tokens.

Q: What happens if I send an ACH transfer without the required memo field?The exchange cannot match the deposit to your account, resulting in a stranded balance—recovery requires submitting bank statements and ID to support staff for manual reconciliation.