How Long Does An ACH Transfer Take In 2025?

When it comes to your cash flow, you may be wondering, how long does an ACH transfer take? These types of electronic credits and debits travel on the Automated Clearing House (ACH) network, similar to the postal service.

The postal service is an affordable, reliable, and orderly system for delivering vast quantities of mail, sometimes at great distances.

The Automated Clearing House network works like the postal service of the electronic funds transfer (EFT) universe, with individual ACH transactions as the pieces of mail.

It submits transfer requests in batches—just like the post office collects and distributes mail at predetermined pickup and delivery times. This system allows the ACH network to offer a cost-efficient and secure way to move money in exchange for slightly longer processing times than other types of electronic funds transfers.

This guide shares the typical ACH transfer processing time alongside rules and regulations to consider when using this type of electronic payment.

What is the Automated Clearing House (ACH)?

The Automated Clearing House (ACH) is a digital network that processes electronic payments between banks. The ACH transfer network is maintained by an organization called NACHA, or the National Automated Clearing House Association. NACHA is a 501(c)(6) not-for-profit association connected to approximately 11,000 different financial institutions across the United States.

ACH transfers vs. wire transfers

While ACH and wire transfers are both electronic payment options, they’re not the same. Here’s how they compare:

• Network. ACH transactions use the ACH network. Institutions use networks like Fedwire Funds Service.
• Speed. An ACH transfer from a US bank to another US bank can take one to three business days, because of the batch practice. A domestic wire transfer is faster, going directly from bank to bank. It ranges from minutes to a business day.
• Frequency. ACH is common for frequent electronic transfers, such as payroll or recurring payments, though you can also use them for one-off payments. Wire transfers are typically better suited to one-time payments, such as large or time-sensitive transactions.
• Reversibility. In cases of error or fraud, it’s possible to reverse ACH transactions, providing flexibility for businesses. Wire transfers are usually final and almost impossible to reverse once processed.
• International payments. Both ACH and wire transfers may be used internationally. ACH payments can be more difficult because there is no global clearing entity and not every country accepts them.
• Cost. ACH transfers are typically more cost-efficient than wire transfers, which have fees from $0 to $50.

How long does an ACH transfer take?

An ACH transfer typically takes one to three business days to complete, although same-day processing options are available for an additional fee. Ensuring all transaction details are accurate and submitted before the bank’s cutoff time helps expedite this process.

There are two kinds of ACH transactions: ACH debit transactions and ACH credit transactions. The NACHA mandates different processing speeds for each.

ACH credit transactions

ACH credit transactions move money from an account at the originating depository financial institution (ODFI) to an account at the receiving depository financial institution (RDFI). They must be processed within two business days. An example of an ACH credit transaction is a payroll direct deposit.

ACH debit transactions

ACH debit transactions move money from an RDFI account into an ODFI account. They must be processed within one business day. An example of an ACH debit transaction example is a recurring auto-payment of a utility bill.

RDFIs often hold transactions for an additional one to two business days to verify the debited bank account holds sufficient funds to cover the ACH transaction. Your bank may show the transaction as “pending” during this period.

This verification brings the total ACH transfer time to an average of one to three business days. Many financial institutions also offer same-day ACH transfers for an additional fee.

Factors that influence ACH transfer times

The type of ACH transaction is one of many factors that influence transfer times. Others include:

• Time of transfer initiation. Same-day fund transfers may appear in the recipient account the next business day if requested after a bank cut-off time or after its business hours.
• Weekends and holidays. If you initiate an ACH transfer on a weekend or a holiday, the bank will not process it until the next business day.
• Limits. Banks set limits for how much you can transfer per day or transaction (typically ranging from $1,000 to $25,000). Multiple or a bigger transaction that surpasses the limit can delay your transfer.
• Payment returns. Insufficient funds, incorrect account numbers, and closed accounts are a few reasons your payment may not go through and delay an ACH transfer.

How much do ACH transfers cost?

ACH transfer fees range between $0 and $10, but most are about 40¢. The fee amount depends on your bank and a few other factors, such as:

• Speed. A same-day ACH transfer incurs an additional fee.
• Type of transaction. ACH debit can cost more than an ACH credit. 
• Monthly fees. If you set up recurring ACH transactions, you might need to pay a monthly fee.
• Setup fees. When you set up a recurring ACH transaction, you might need to pay a one-time setup fee.

Many small businesses work with payment processors (such as Shopify Payments or Square) that process business-to-business and business-to-consumer transactions. The third-party payment processor then determines the cost of the transaction, with typical ACH transfer fees ranging from 0.8% to 1.5% of total transaction cost.

How ACH transfers work

ACH transfers follow a step-by-step process. Each step can take as little as an hour or up to two business days, depending on the transaction type (a standard ACH credit can be next business day and ACH debit can take one to three business days), the schedules and policies of the participating financial institution(s), and the time of day of the request submission.

Here’s a rundown of the ACH transfer process:

1. Initiation. The originating party initiates a credit or debit transfer.

2. Batching. The originating institution (or ODFI) batches the transaction along with other ACH transfers.

3. Sending. Batched transactions are sent out to the ACH network at regular intervals during the business day (6 a.m., 12 p.m., 4 p.m., 5:30 p.m., and 10 p.m. ET). The time you submit the request determines when it’s delivered. For example, if you send it at 9 a.m. on a business day, these transactions are sent within the next few hours. But if you send it at 6 p.m. on a Friday, it might not be sent until the next business day.

4. Receiving. An ACH operator—either the Federal Reserve or the Electronic Payments Network—receives the batched transactions, sorts them, and submits the transactions to the RDFI. The ACH network submits transactions to receiving institutions five times per business day. (This takes one business day to complete.)

5. Processing. The receiving bank processes the transaction. To verify the debited account contains sufficient funds, some financial institutions choose to hold funds for a set amount of time before depositing the transferred funds into the account to be credited. (This may take between one to two business days to complete.)

6. Depositing. ACH funds are deposited in the receiving accounts.

Limitations of ACH transfers

Although ACH transfers are efficient, secure, and low-cost, they’re not ideal for all transactions.

Here’s why:

• Processing times. Because ACH transfers are processed in batches, direct ACH payments typically take one to three business days to appear in the recipient’s account. Generally, this is longer than wire transfers, credit card transactions, and ATM transactions.
• Not always compatible internationally. You can deposit ACH payments to international bank accounts, but not every country will accept ACH. In that case, you’ll need wire transfers or other payment methods.
• Transfer limits. Some banks impose daily, weekly, monthly, or per-transaction limits on the amount of money you can send through ACH. Check with your bank to make sure its policies provide the kind of transfers you need to support your business operations.

ACH transfer rules and regulations

• NACHA guidelines
• Authorization requirements
• Consumer protection laws
• Fraud prevention measures
• Record keeping and compliance

Learn about the following regulations before you process ACH transfers:

NACHA guidelines

The National Automated Clearing House Association (NACHA) is a regulatory body that oversees all ACH transactions and enforces regulations businesses must follow for these electronic payments.

NACHA’s rule book is extensive, and it includes guidance on:

• Obtaining a customer’s explicit permission to process an ACH payment
• Providing notice for any changes to a payment schedule
• Canceling subscriptions promptly

Noncompliance with NACHA’s ACH guidelines could result in fines of up to $500,000 per month, so read its documentation before using ACH payments in your business.

Authorization requirements

Customers need to submit an ACH authorization request before you can process their ACH payment. This form should include fields like:

• Company information such as address and contact number
• Payee name, bank account number, and routing number
• Type of transaction
• Amount to be paid
• Frequency of the transaction and permission for future debits
• Terms and conditions
• Signature

While this form might sound like an unnecessary step with the potential to turn customers away, you must have explicit permission to take payment from a customer before doing so. This authorization document is a paper trail proving the customer granted permission.

Consumer protection laws

Consumers are protected when making ACH payments if the payment was unauthorized. This can happen if:

• The customer never authorized the payment (or revoked their permission)
• The payment was taken from their account earlier than agreed
• The amount taken from their bank was higher than initially authorized

If the customer flags this unauthorized payment to their bank within 60 days of receiving their statement, their bank must refund the amount. The bank will try to reclaim this money from the merchant.

Fraud prevention measures

Fraud occurs when people misuse the ACH system to illegally obtain money. Data theft, phishing scams, and account takeovers are common examples of how this happens.

To limit the chances of ACH fraud, you must have fraud prevention measures in place. This includes (but is not limited to) using two-factor authentication for any login credentials, verifying payment details, and training your team how to detect threats.

Record-keeping and compliance

ACH compliance means your business abides by the NACHA rules and any applicable laws. Record-keeping helps prove this compliance and resolve any disputes (i.e., fraud or refunds) because you’ll have a paper trail of evidence to support each transaction.

Common uses of ACH transfers in ecommerce

• Recurring billing and subscriptions
• Vendor payments
• Payroll processing
• Customer refunds
• Direct debit for online purchases

ACH transfer is a popular type of payment method. In the second quarter of 2025, ACH payments increased 5%, reaching $8.7 billion. Here are some popular uses of ACH transfers in ecommerce:

Recurring billing and subscriptions

Insurance providers, utility companies, and brands offering product subscriptions often use ACH transfers. The ability to set up recurring payments means the business doesn’t need to manually process payments according to the payment schedule. The customer has already authorized that payment to leave their account.

Vendor payments

The ACH offers lower payment processing fees than alternative methods like wire transfer or credit card payment, making them ideal for larger transactions. It’s also quicker for suppliers to receive money when you use ACH payments for paying bills (as opposed to paper checks).

Payroll processing

Payroll takes place on specific days of the month. Pushing these through an ACH payment saves time over initiating manual payments. Automation also means they get the right amount paid into their bank account. Employees get their full salary paid on time, every time, which is important for morale.

Customer refunds

ACH payments are secure and easy to track, making them a popular choice for refunds. There’s no risk of a check getting lost in the mail or a customer losing their gift receipt. The money goes straight into the customer’s bank account used to pay for the item.

Direct debit for online purchases

ACH payments don’t require customers to enter their credit card information each time they make an online purchase. This eliminates the risk of failed transactions due to incorrectly typing credit card details or using expired credit cards. The bank account details you’ve already collected don’t change.