ACH transfers take from 1 to 3 business days and have established themselves as a key B2B payment method in the last few years. Indeed, over 35 billion payments were initiated under the ACH transfer network in 2025, with B2B payments increasing from 7 to over 8 billion transactions in 2025 vs 2024. Timeline, processing and security, learn all there is to know about ACH transfers.
At Trustpair, we secure all ACH payments through ACH account verification.
How Long is An ACH transfer: Key Takeaways
- Errors or rejected ACH files can significantly delay settlement, sometimes pushing the ACH transfer timeline from days to weeks if the process must restart.
- Most ACH transfers take 1 to 3 business days to complete, as payments are processed in batches through the Automated Clearing House (ACH) network rather than in real time.
- Same-day ACH is available for faster payments, provided the transfer is initiated before the ACH cutoff times (typically before 1 pm EST), allowing funds to settle the same business day.
- ACH transfer times depend on timing and accuracy, meaning payments submitted outside processing windows, on weekends, or with incorrect banking details can take longer.
- ACH transfers are slower than wire transfers but more cost-effective, making them a preferred option for routine B2B payments, payroll, and recurring transactions in the US.
What is an ACH transfer?
ACH payments are a form of payment method, largely reserved for domestic US-to-US money transfers. They’re electronic, without the typical paperwork requirements of check payments.
They are widely considered to be the best payment method for businesses operating in the States since they’re much cheaper than wire transfers and faster than other payment types.
ACH transfer definition
ACH stands for “automated clearing house”, the organization responsible for facilitating these bank transfers. The Clearing House is owned by 24 of the largest US banks and is an electronic network, rather than a physical entity.
ACH transfers typically work with lower value amounts and have limits much lower than wire transfers. But they’re incredibly cheap to process, costing approximately 0.5% of the transaction amount. Since ACH transfers need to be formally filed, they can take an average of 3 business days to process. If you’re in a hurry, same-day ACH transfers also exist.
ACH transfers are advantageous for businesses as they remove the need for paperwork. No more clunky check payments and no need for a card machine, ACH enables an easy money transfer without any fuss.
Different types of ACH transfers
There are two different types of ACH transfer:
- Direct deposits
- Direct payments
Direct deposits
Direct deposits within the ACH network are the term that usually describes money paid out of a bank account from a business. They can refer to:
- Salaries paid into employee accounts
- Tax returns
- Other benefits paid by the government
That works when a company instructs its bank to send money to a recipient. After providing the correct account details and personal information, the bank then makes use of the ACH network to directly transfer funds to the recipient’s bank. The recipient bank then deposits the money into their account, in a completely automated financial process.
Direct payments
Direct payments, in the context of the ACH network, describe the money used to make a transfer, in the form of credits and debits. Credits are simple: they’re the funds transferred into an account.
But there are a variety of different types of debits, which include:
- WEB (authorized online, internet-based entry)
- TEL (authorized by phone)
- PPD (pre-arranged and authorized by paper-based means)
How long does an ACH transfer take?
On average, ACH transfers take 3 days to process. Depending on the type of payment, ACH transfers can happen instantaneously or take up to 5 business days to complete. And if there’s an error within the files, you could end up waiting months for your funds as it’s entirely dependent on the third party: the ACH network.
The network relies on time-based windows to facilitate various payment actions. Since 2015, two extra windows have been added to facilitate same-day transfers. It now means that payments must be initiated before 1 pm EST to ensure the recipient receives the funds by 5 pm EST.
So if you happen to initiate your transfer outside of those windows, you could end up waiting until the next working day to get things moving, which will stretch out the entire process. To be sure, initiating payments before the first payment window at 9 am EST would give payees the best chance of getting through any urgent payments.
How does ACH payment processing work?
There are two important players in the ACH network:
- ODFI: originating depository financial institution
- RDFI: receiving depository financial institution
The payee will submit a payment request to their bank, the ODFI. This originating bank creates a file to formalize the transfer records, debits the money, and submits the file into the ACH network. The RDFI accepts the file and takes the money. They then deposit the funds into the recipient’s bank account.
Because these payment transfers happen in batches, banks group together each individual request into a larger action. Thanks to the filing system, it’s easy for institutions to know exactly who paid what, and break down the entire money transfer into individual transactions at the receiving end.
The only thing which varies in this process is the timeline. As mentioned, thanks to the existence of payment windows, ACH transfers can differ in the time they take to complete. For same-day transfers, the fast-moving nature of the process leads to a “same-day entry fee”, which is approximately $0.10 to $0.15 higher than standard ACH processing costs.
What are the benefits of ACH payments?
The advantages of ACH payments for businesses are:
- lower processing costs compared to other payment methods
- predictable timing and improved cash flow
- practicality for recurring and high-volume payments
- high security standards
Lower processing costs compared to other payment methods
One of the biggest advantages of ACH payments is cost savings. ACH payment processing fees are significantly lower than those of wire transfers and credit cards, making ACH transfers ideal for vendor payments, bill payments, and payroll.
Because ACH transactions move funds directly between bank accounts through the electronic payments network, businesses avoid high interchange fees and benefit from more predictable processing costs.
Predictable timing and improved cash flow
ACH transfers typically take 1 to 3 business days, which allows companies to plan around ACH transfer timing more effectively. This predictable ACH payment processing time helps finance teams manage cash flow, avoid overdrafts, and reduce the risk of insufficient funds.
For faster needs, same-day ACH processing is available, allowing funds to reach the recipient’s account on the same business day when initiated within ACH processing windows.
Ideal for recurring and high-volume payments
ACH payments are particularly well suited for recurring payments and recurring billing, such as payroll via direct deposit, utility bills, subscriptions or tax refunds.
Using ACH debit or ACH credit, businesses can collect payments or send funds automatically, reducing manual intervention and failed payments tied to checks or card expirations.
Secure bank-to-bank transfers through regulated institutions
ACH payments are processed by regulated financial institutions, including the originating depository financial institution (ODFI) and the receiving depository financial institution (RDFI), under strict ACH rules set by Nacha.
This structure adds security to electronic transfers and reduces exposure to fraud compared to instant or irreversible payment methods.
What are the limits of ACH transfers?
While ACH transfers can be beneficial for businesses, there are some limitations to be aware of:
- No instantaneous transfers
- Domestic payments only
- No work-arounds for errors
Firstly, the ACH network does not facilitate instantaneous transfers. These are managed by third-party platforms like Venmo and Paypal and formalized through the filing system later on. While these services are beneficial in situations where instant ACH transfers are necessary, they do pose security risks.
For example, when sent in real-time, most companies are unable to verify the details of their recipient. Instant payments open the door for fraudsters to pose as a genuine business and make off with your funds before you’re able to authenticate their identity.
Secondly, most ACH facilitators only support domestic payments, from US to US bank accounts. For businesses with international suppliers, this can be a huge inconvenience, and not easy to work around. If merchants can’t open up their own American accounts, you will have to look towards other payment methods to compensate suppliers.
Finally, one of the biggest limitations of the automated clearing house is the filing process itself. If there’s any type of error within the file, perhaps because of a mistyped account number, for example, then the transaction won’t work.
This is actually beneficial in the case of fraudsters posing as your real suppliers, attempting to get paid for a fake invoice, for example. But in the case of genuine mistakes, this can significantly lengthen the entire ACH transfer process. The pending payment is returned to the sender, and the process must start right back at the beginning. In some cases, this can delay payment by weeks.
What’s more, ensuring the security of the file is the responsibility of the ODFI. So if you’re expecting to receive money, your receiving bank won’t even be able to offer any help.
What are the key differences between ACH and other payment methods?
ACH transfers differ from other payment methods mainly in processing speed, cost, settlement model, and fraud exposure. While ACH is designed for low-cost, domestic, batch-based payments, other methods prioritize speed or convenience – often at a higher cost or risk.
To make use of all types of payments without worrying about the threat of fraudsters, a platform like Trustpair can help. We secure payments by validating the bank, personal, and company details of your suppliers. Working in real-time, we effectively block any transaction attempts where the details are misaligned, in order to protect your company from ACH fraud.
ACH vs other payment methods: our comparison
| Payment method | Typical processing time | Cost | Best use case | Key limitation |
|---|---|---|---|---|
| ACH transfer | 1–3 business days (same-day available) | Low | Payroll, B2B payments, recurring transfers | Not instant |
| Wire transfer | Same day or next business day | High | Urgent, high-value payments | Expensive, high fraud risk |
| Checks | 3–7+ business days | Low–medium | Legacy payments | Slow, manual processing |
| Credit cards | Instant authorization, delayed settlement | High (interchange fees) | Online and consumer payments | Chargebacks, higher costs |
| Real-time payments (RTP) | Seconds | Low–medium | Instant domestic payments | Limited adoption, irreversible |
ACH vs Wire Transfers
ACH transfers are slower but significantly cheaper than wire transfers. While ACH payments typically take 1 to 3 business days, domestic wire transfers often settle within the same day.
However, wire transfers come with higher fees and increased fraud risk, as payments are harder to recall once sent. ACH, by contrast, relies on batch processing and verification steps, making it better suited for routine and repeat business payments.
ACH vs Checks
Transfers through the ACH network are the digital alternative to paper checks, eliminating manual handling and mailing delays. While checks can take several days or even weeks to clear, ACH payments generally settle within a few business days.
ACH also reduces the risk of lost or altered checks and provides better traceability, making it the preferred option for businesses transitioning away from check-based payments.
ACH vs Credit Cards
Credit cards offer instant payment authorization, but settlement happens later and comes with high processing fees. ACH transfers, although slower, are far more cost-effective for high-value or recurring payments.
In addition, ACH payments have lower chargeback exposure compared to credit cards, which is why many businesses prefer ACH for B2B transactions, payroll, and vendor payments.
ACH vs Real-Time Payments
Real-time payment systems (such as RTP) move money within seconds, whereas ACH transfers rely on scheduled processing windows. This makes real-time payments ideal for urgent transfers.
That said, ACH remains more widely adopted and standardized across US financial institutions. ACH payments also allow for more controls and verification, while real-time payments are typically irreversible, increasing risk if recipient details are incorrect.
To recap:
How long does an ACH transfer take? Usually between 1-3 business days, since ACH transfers are batched together. But same-day ACH is available and guarantees that the recipient receives their funds on the same working day that they are sent, as long as the payment windows are abided by.
Trustpair is a Nacha preferred partner for ACH account validation, helping finance teams wipe out fraud an boost efficiency. Chat with an expert to secure your ACH payments.
