ACH and Other Account to Account Transfer Times
Confidently predict ACH transfer times and other payment processing times on the Dwolla Platform.
Dwolla provides businesses with a flexible payment API that supports multiple account-to-account payment methods, including real-time payments and ACH (Automated Clearing House) transfers. Real-time payments have shorter transfer timelines, while ACH transfer times can vary depending on the type of transaction and the day of the week you initiate it.
This resource outlines the timing of the different account-to-account transfer types and how you can shorten those timelines with the Dwolla Platform by combining ACH credit and debit transfers with real-time payments.
- Standard ACH Transfer Timing
- Next Day ACH Transfer Timing
- Same Day ACH Transfer Timing
- Real-Time Payments
- Balance-to-Balance Transfers
- Combining Faster Transfers
- ACH Returns
Note: All examples are Central Time. Many of our examples start transactions on a Monday—this is intentional and meant to help simplify potentially complicated examples. Real-time payments can be initiated at any time, and will process on weekends or after business hours. ACH transfers can be initiated at any time, but they’ll only process on business days that aren’t banking holidays.
Standard ACH Transfer Timing
Standard ACH Debit: A Standard ACH Debit transfer pulls funds from a bank account. These funds are available three to four business days after the transfer is initiated. The delay helps mitigate a risk of ACH returns by ensuring sufficient funds are available and account information was entered correctly.
EXAMPLE
An example of a Standard ACH Debit transfer is a utility company pulling funds each month for an individual’s bill. The individual authorizes the utility company to debit an attached account each month, and it pulls those funds automatically at a predetermined date.
Standard ACH Credit: A Standard ACH Credit pushes funds from one bank account to another—crediting an account. When the transaction is initiated prior to 4 p.m. on a business day that isn’t a banking holiday, funds are available in the receiver’s bank account as early as the following business day.
EXAMPLE
An example of a Standard ACH Credit transfer is a direct deposit of payroll by an employer. An individual authorizes their employer to electronically deposit their paycheck into their account each pay period, and the employer does so each time it runs payroll.
Next Day ACH Transfer Timing
Next Day ACH transfers are only available for the debit portion of a transaction.
With Next Day ACH, a transfer initiated before 4 p.m. on a business day is available in the recipient’s bank account on the following business day.
Same Day ACH Transfer Timing
Same Day ACH transfers are available for the credit and debit portion of a transaction.
With Same Day ACH, a transfer initiated before 3 p.m. on a business day is available in the recipient’s bank account by the end of the same business day.
The table below includes transfer cutoff times for Same Day ACH and when the recipient can expect funds to be available in their bank account.
| Transfer Cutoff Time | Availability of Funds |
|---|---|
| 9:00 a.m. | 11:30 a.m. |
| 1:00 p.m. | 5:00 p.m. |
| 3:00 p.m. | 5:00 p.m. |
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Real-Time Payments
Real-Time Payments are near instantaneous bank transfers that clear, 24/7/365. These transactions are sent within seconds using the RTP® network. An RTP transaction through the RTP network is a push (credit) only payment. Funds are settled into the receiver’s bank account in real-time.
With the RTP network, the sender is notified when a transfer is completed, and the receiver sees the funds posted to their account seconds after the transfer is initiated. Real-time payments are much like cash—except electronic.
To complete a RTP transfer, both the sending and receiving bank accounts must be at participating financial institutions.
Balance-to-Balance Transfers
Truly instant payments can happen on the Dwolla Platform when funds are sent between two Verified Customers that hold a balance within the Dwolla Network. This means both end users have completed the verification process within the Dwolla API and have funds available in their Dwolla Balance.
End users can immediately access funds tied to these accounts.
Combining Faster Transfers
With Dwolla, an account-to-account transfer requires money going into the Dwolla Network and money going out of the Dwolla Network. Businesses can expedite transfers by combining transfer types. Each side of the transfer can use the payment method and timing that works best for the specific use case.
EXAMPLE
For example, a business could choose Same Day ACH to transfer funds into the Dwolla Network (debit) and RTP for the transfer out of the Dwolla Network (credit) and to the final destination bank account. When paired together, a business could achieve a bank-to-bank transfer within the same day.
Consider these examples of combinations of transfer speeds in and out of the Dwolla Network.
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Standard ACH Debit + Same Day ACH Credit
If a Standard ACH debit transfer is initiated by 4 p.m. on Monday (and no ACH return codes are received by Thursday), funds are available in the Dwolla Network on Thursday.
On Friday, the application initiates a Same Day ACH credit before 9:30 a.m, sending those funds to the receiver’s bank account. They will arrive in the receiving customer’s bank account by noon on that business day.
Next Day ACH Debit + Standard ACH Credit
If a Next Day ACH debit transfer is initiated by 4 p.m. on Monday, funds are available in the Dwolla Network on Tuesday.
On Tuesday, the application initiates a Standard ACH credit before 4 p.m. sending those funds to the receiver’s bank account. They will arrive in the receiving customer’s bank account as early as the following business day.
Next Day ACH Debit + Same Day ACH Credit
If a Next Day ACH debit transfer is initiated by 4 p.m. on Monday, funds are available in the Dwolla Network on Tuesday.
On Tuesday, the application initiates a Same Day ACH credit before 9:30 a.m, sending those funds to the receiver’s bank account. They will arrive in the receiving customer’s bank account by noon on that business day.
Same Day ACH Debit + Real-Time Payment
If a Same Day ACH debit transfer is initiated by 3 p.m. on Monday, funds are available in the Dwolla Network by 5 p.m. on that same day.
Once the funds become available, an RTP transaction can be initiated by an end user through the RTP® Network , sending the funds in real-time to the receiving bank account.
ACH Returns
Speeding up the payment does not shorten the window of opportunity for an ACH return.
According to Nacha rules, the filing window for most ACH Return Codes is 2 business days (not including bank holidays) but some returns can come as much as 60 days later. If a return code arrives after a transaction processes and the funds have already been transferred to a destination account using one of the faster payment options, the client sending those funds could lose them.
Take Same Day ACH, for example. The transaction processes and funds become available the same day, but without some type of balance check, it’s hard to know if the bank account sending funds has enough in the account to cover the debit. Until the ACH return filing window closes, that Same Day ACH transaction is not final.
Navigate the complexities of ACH Returns with this resource. Learn best practices for protecting your business and your end users from ACH returns, and better understand how chargebacks are different.
*Note: All transfers may be delayed by either the sending or receiving financial institution, including Dwolla’s partner financial institution.