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What is Same Day ACH?
While traditional ACH payments take 3 business days or more to settle, ‘Same Day ACH’ payments, are settled within the same business day.
ACH accounts for over 90% of all electronic payments in the United States with upwards of $50 trillion passing through this system each year! Despite having more advanced payment technologies available, ACH seemingly shows no sign of slowing down.
A clearing house is an intermediary between parties exchanging goods, in our case, a check. When this intermediary is intangible and electronic (ie., “automated”), we refer to the transaction as being settled via the Automated Clearing House (ACH).
While traditional ACH payments take 3 business days or more to settle, ‘Same Day ACH’ payments, as its name suggests, are settled within the same business day as long as the payment is submitted before 5PM local time. Same Day ACH is the fastest this payment rail gets!
Businesses can leverage Same Day ACH functionality to transact up-to $100000 per transaction to make payroll payments, expedited bill or mortgage payments and other B2B payments.
About Author: Shreeya Agarwal
