The Automated Clearing House (ACH) is a cost-effective way for moving money from one U.S. bank account to another. The time it takes for funds to move from one account to another depends on a few things.

First, the ACH transfer depends upon where (which financial institution) the transaction is being originated. The financial institution that you ask to initiate the ACH transfer is called the ODFI, or the Originating Depository Financial Institution. The financial institution on the other side of this transfer is called the RDFI, or Receiving Depository Financial Institution.

The ODFI tells the RDFI when and how much to debit or credit the account, therefore making the transfer time dependent upon when the ODFI initiates the ACH transfer. This can be further complicated when different financial institutions like to wait an extra day or two until they release the funds, waiting to make sure that the funds are good. ACH transfer times can average anywhere from 1-4 business days.

Dwolla is a platform that provides individuals and businesses all over the U.S. with an easy on-ramp to the ACH network. Because ACH transfers can be cost-effective for sending large volumes and large dollar amounts, businesses are particularly drawn to electronic bank transfers to replace paper checks, wire transfers, and credit cards that can take large cuts of each transaction they process.

Knowing that some businesses would benefit from sending and receiving ACH transfers more quickly than the average ACH transfer time, Dwolla offers approved businesses next day ACH transfers. Dwolla offers this functionality not only to the business, but in some cases to the application, meaning that customers sending funds to the business will automatically have their transactions process in 1-2 businesses.

Are you interested in integrating a payment provider that can help you navigate the complexities of the ACH network, and provide next-day ACH transfers? Contact us to learn more about using Dwolla’s ready-made web app, or integrating our functionality into your platform via our ACH API.


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