How Long Do ACH Transfers Take? Speed & Timing Explained

An ACH (Automated Clearing House) transfer is a type of electronic payment where funds are moved from one financial institution to another through the ACH network in the United States. The network is overseen by the National Automated Clearinghouse Association (NACHA), which sets standards and rules for ACH payments. ACH transfers are commonly used for payroll, bill payments, loan payments, and government benefits, making it a versatile and trusted option for businesses seeking seamless and cost-effective payment processing.

In this article, we examine ACH processing times, the factors that affect them, and tips for speeding up your transfer.

• Standard ACH transfers typically take 1 to 3 business days to process, while same-day ACH transfers may only take a few hours.
• Several factors can affect processing times for ACH transfers, including the type of transfer (credit or debit), the time of day when the transaction is initiated, the size of the transfer, and whether the payment is international or domestic.
• You may be able to reduce the risk of delays in ACH transfers by submitting your payment early in the day, verifying all banking details are correct, and paying an additional fee for same-day processing.

How long do ACH payments take to clear?

The typical ACH transfer time takes 1-3 business days to process. However, the exact processing time may vary depending on factors such as the time or day the transfer was requested, weekends and national holidays, errors, and the type of transfer.

Factors Affecting ACH Transfer Speed

• Time of transfer: ACH payments are processed in batches. This means that transfers initiated outside banking hours are usually processed on the next business day.
• National Holidays and Weekends: ACH transfers are only processed on business days, during hours of operation for the originating and receiving financial institutions. If you initiate a payment on a weekend or federal holiday, your transfer won’t start processing until the start of the next business day.
• Type of transfer: ACH credit transfers, or “push” transactions, take longer to process than ACH debit transfers, or “pull” transactions. This is because the NACHA requires debit transactions to be processed within one business day. Credits and debit payments may also come with different ACH transfer fees.
• Errors: Issues concerning account details verification or insufficient funds may result in payment returns, causing further delays to your ACH transfer. If this occurs, you may receive an ACH return code such as “insufficient funds” or “invalid account number.”
• Domestic vs. International Transfers: International ACH transfers tend to process more slowly than domestic transactions due to cross-border regulations, currency conversions, time-zone differences, and international compliance issues. A typical international transfer usually takes 3-5 business days, but currency conversions and international banking regulations can lead to further delays.
• Transfer Size: Many financial institutions set ACH transfer limits. Larger, high-value transactions typically require additional verification and may trigger extra fraud checks that can extend processing times.
• Third-Party Payment Processors: Many ACH payments are processed through third-party services like PayPal, Google Pay, or Apple Pay. If your transaction involves a third-party payment processor, it may take additional time for the funds to reach the recipient’s account.

The involvement of so many parties is one of the reasons ACH payment processing is a bit slower than other payment methods. Payment data is sent to the ODFI (Originating Depository Financial Institution), which then sends it to the Federal Reserve. Once the Federal Reserve receives and processes the data, it sends the ACH transaction to the RDFI. Some banks have the same rigorous fraud and risk reviews for ACH transfers as they do for evaluating fraudulent checks. This can also lead to longer processing times.

Unfortunately, instant ACH payments are not possible. However, Same-Day ACH transfers are available if you wish to accelerate the transfer time. While not exactly instant, the funds will arrive within a few hours on a business day. Keep in mind that this option comes with a fee that’s higher than the standard ACH transfer.

So, how long does it take for an ACH transfer to complete when same-day rules apply?

If you initiate a same-day transfer on a weekend or federal holiday, you’ll have to wait for the next business day for processing. Each business day, there are three processing windows for same-day ACH transactions:

• Morning ACH processing: Transfers are complete by 1:30 PM Eastern time
• Afternoon ACH processing: Transfers are complete by 5:00 PM Eastern time
• End-of-day ACH processing: Transfers are complete by 11:00 PM Eastern Time

It’s important to note that financial institutions have different cutoff times. If your transaction is submitted after your bank’s cutoff time, it won’t be processed on the same day.

ACH transfer vs Wire transfer — Which is faster?

Wire transfers are faster than ACH transfers. Domestic wire transfers are usually cleared in less than 24 hours after initiating the payment, as compared to ACH payments, which take 1 to 3 business days to process. 

Basically, when it comes to processing time, wire transfers are superior. However, it’s important to consider the pros and cons of each payment type before making a decision. Below is a summary of the differences between ACH transfers and wire transfers:

What’s the average ACH transfer fee?

The flat fee for both ACH debit and credit transfers ranges from $0.20 to $1.50 per transaction. The percentage fee per transaction is between 0.5% and 1.5%.

Besides the flat fee and percentage fee, there are other types of ACH fees you should be aware of. For example, if a customer disputes a transaction, you will be charged a chargeback fee.

Can you track an ACH payment?

You can track an AHC transfer using a 15-digit trace ID. Each AHC transaction is assigned two trace numbers – one for the sender and another for the receiver. If you are the recipient, you’ll need to obtain the trace ID from the sender and contact your bank with that information. If you are the sender, you can reach out to your bank directly. They may also ask you to confirm details such as the date of the transaction and the amount sent.

Another simple way to track an ACH payment is to check your transaction history. Many banks will show whether a transaction is “pending” or “completed” in your history.

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Best Practices for ACH Transfers

While there’s no option to expedite an ACH transfer, there are ways to ensure a smooth transaction and avoid further delays:

• Ensure accurate account information: Double-check and verify that the account details you provided are correct to avoid verification issues.
• Schedule appropriately: Plan the day and time to initiate your ACH transfer, ideally during business hours. Remember to take into account weekends and holidays.
• Confirm that you have sufficient funds. Making an ACH transfer with insufficient funds may result in payment returns, which can delay your transaction.

Wrapping Up: ACH Transfer Time Insights

Due to their convenience and notably low processing fees, ACH transfers are an excellent way to move funds electronically between banks in the United States. While ACH transfers may take longer than other forms of payment, they’re still one of the most secure payment methods, especially when compared to alternatives like wire transfers. For urgent payments, Same-Day ACH is available. However, if you opt for the standard transfer, you can make the whole process smoother by planning your transfer schedule and ensuring accurate account information.