Overview
ACH (Automated Clearing House) payments are processed in daily batches and go through a clearing and settlement process before funds are deposited into your account. Unlike card payments, which may settle quickly, ACH transactions typically take a few days to complete. This guide explains how ACH payments move from submission to funding.
How ACH Transactions Are Submitted and Processed
When you submit an ACH transaction, it follows this path:
- Transaction Submitted – The merchant initiates a transaction via the Virtual Terminal, API, or another supported tool.
- Daily Batch – Transactions are grouped into a batch that is submitted once per business day.
- Clearing – The batch is sent to the ACH network and reviewed by the customer’s bank.
- Settlement – Once approved, funds are transferred between banks and deposited into your account.
The entire process usually takes 3–5 business days, depending on your bank, processor, and transaction timing.
ACH Transaction Types and Their Behavior
ACH supports several transaction types:
- Sale – Pulls funds from the customer’s account.
- Void – Cancels a transaction before it is processed.
- Refund – Sends money back to the customer after a completed sale.
Note: Funds are not available immediately after submission. Voids can only be performed before the batch is processed. Refunds can take several days to appear in the customer’s account.
Standard Funding Timeline
ACH funding timelines can vary slightly, but most follow this schedule:
| Day | Activity |
|---|---|
| Day 1 (Submit) | Merchant submits ACH transaction |
| Day 2 | Processor sends batch to customer’s bank |
| Day 3–5 | Bank clears transaction and funds settle |
Holidays and weekends do not count as business days and may delay processing.
Common Questions
Why does ACH take longer than card payments?
ACH transactions move through a bank-based network and require batch processing and approval from both banks before settlement.
Can I speed up ACH settlement?
Some processors offer expedited or same-day ACH for an additional fee. Ask your Merchant Service Provider if this is available to you.
How do I check the status of an ACH transaction?
Log in to your merchant portal and view the transaction under Transaction Reports. You can track its progress and view status details.
Need Help?
If you need assistance understanding ACH timelines or tracking a transaction, please contact your Merchant Service Provider.