ACH (Automated Clearing House) payments go through several stages, and while the funds may move quickly, settlement (the official transfer of funds between banks) can take up to 6 business days, especially in cases of risk review or reserve policies.
Standard ACH
Submission to Funding: 1–2 business days
Settlement Timeframe: Typically within 2–4 business days, but can extend to 6 days depending on:
Merchant risk profile
Transaction type
Underwriting/hold policies
Used for most routine business transactions like payroll, rent collection, and vendor payments.
Same-Day ACH
Submission to Funding: Same business day if submitted before cutoff (typically 2:45 PM ET)
Settlement Timeframe: Usually 1–2 business days, can still extend if manual review is required
Ideal for urgent transactions like corrections, refunds, or time-sensitive customer payments.
Detailed Timeline Example (Standard ACH)
| Day | Action | Status |
|---|---|---|
| Day 0 | Merchant submits ACH file | Initiation |
| Day 1 | File processed by ACH network | In transit |
| Day 2 | Funds debited from customer | Pending settlement |
| Day 3 | Risk checks/fraud monitoring | Holding period may apply |
| Day 4 | Funds available to merchant | Settled (if cleared) |
| Day 5 | – | Reserve review (if any) |
| Day 6 | Final settlement completed (if needed) | Fully settled |
? Note: Days are business days only. Weekends/holidays don’t count.
What Can Affect Settlement Time?
Merchant risk category
Type of goods/services
High-ticket or high-volume processing
New account/merchant status
Funding policies by payment processor (e.g., CSG Forte)
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article