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The payments landscape changed in September 2016 when Same Day ACH enabled ACH transfers to send money directly between bank accounts within the same business day. Since then, Dwolla’s payment API has been helping marketplaces pay merchants faster by utilizing Same Day ACH for credits and debits. 

We recognize our clients have sophisticated payment needs, such as complex payment flows and multiple transfer types. Same Day ACH is just one way Dwolla solves problems for our clients. 

In this blog we’ll explain the value of Same Day ACH for marketplace payments, define an example of how marketplaces use Same Day ACH and suggest best practices to integrate this technology on your platform.

Same Day ACH Payments

Same Day ACH was rolled out in three phases:

  • On March 18, 2022, Same Day ACH transaction limits increased to $1 million for both debit and credit transactions.
  • On March 19, 2021, a third processing window was added to allow for more opportunities to go bank-to-bank in the same day.
  • In March 2020, the popularity of Same Day ACH led to an increase in transaction limits from $25,000 to $100,000.
  • Same Day ACH Phase 3 was completed in March 2018 and called on banks to make eligible Same Day ACH funds sent before the cutoff window by the end of the day. 
  • Same Day ACH Phase 2 was completed in September 2017 and enabled the ability to receive and process same day credits and debits.
  • Same Day ACH Phase 1 provided the ability to receive and process same day credits to bank accounts by the end of the business day.

Prior to the first phase of Same Day ACH, standard ACH transactions needed as many as five business days to process due to processing hurdles and protocols that ensure funds are where they should be—and for good reason. Suspicious activity happens, and when it comes to money, proper checks and balances are not only necessary—they are required to comply with regulations.

Putting aside risk for a moment (which we talk more about here), increased processing speeds are especially exciting to marketplaces that need to pay vendors, sellers or service providers quickly and affordably. Recipients can now access funds on the same business day payments are initiated.

In 2018, more than 170 million Same Day ACH transactions were initiated, according to Nacha. Through the first three quarters of 2019, Nacha reported more than 170 million Same Day ACH transactions And in 2020, nearly 350 million Same Day ACH transactions occurred.

Merchants Are Getting Paid Faster With Same Day ACH

After launching Same Day ACH credits, we’ve seen a variety of marketplaces start paying merchants faster. 

Some businesses use Dwolla’s ACH API to initiate a transaction once someone has successfully sold an item within their marketplace. Other e-commerce businesses, like a boat rental application, schedule payouts to boat owners using the ACH Network via a connection to Dwolla’s ACH payment API. The result? Merchants—in this case, boat owners—receive payments by the end of business that day. 

And knowing they will get paid faster encourages other boat owners to list their items on the marketplace. 

Integrating Same Day ACH Into A Solution

A common misconception about integrating new technology or functionality is that it’s going to demand a lot of valuable developer time. The ideal payment solution should come with resources to assist before, during and after the integration process. 

Our developer documentation serves as a roadmap to navigate Dwolla’s payment API. Dwolla’s sandbox environment allows for testing specific use cases and features. In the Dwolla Sandbox, create fake customers, initiate fake transactions and do it all from the same dashboard you would see in production. Adding Same Day ACH comes with minimal development time as well—a significant advantage for Dwolla compared to other payment service providers. Instead of requesting “standard” transaction timing, a “next-available” API call is made and the transaction automatically goes in the soonest available ACH format. 

Here are more details on how to programmatically send an ACH transaction.

As new efficiencies in ACH enter the market, we will continue to bring added functionality to Dwolla. For more information about Same Day ACH and how to get started with an integration, contact us today.


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