At Dwolla, we recognize the importance of pushing forward to create and improve services in the fintech space.

While there isn’t a mandatory or ubiquitous real-time payment option for the ACH (Automated Clearing House) Network yet, Dwolla offers different features and functionality that can help your business or organization facilitate faster ACH transactions.

Standard ACH Transfer Times

Before jumping into the expedited options, it is important to review and understand the standard transfer timing of payment transfers offered through the ACH Network. Transactions through the ACH Network are processed by a network operator at predetermined intervals throughout the business day.

Standard ACH Debit

A standard ACH debit through Dwolla will be made available in the Dwolla Network three to four business days after the transfer is sent. Dwolla is not typically notified of an “ACH return” until at least two business days after an ACH transaction has occurred. To mitigate the risk of returns, the funds associated with a standard ACH debit will not be made available within the Dwolla Network for three to four business days to account for the timeline in which the most common ACH return codes are issued.

Standard ACH Credit

After the funds are made available in the Dwolla Network, the “credit” out to the recipient will take place. Assuming the credit is issued prior to 4 p.m., the funds will be in the receiver’s account the following business day.

Standard ACH Transfer Timeline

Accessing the ACH Network through an integration with Dwolla provides businesses the option of expedited transfer times, but doing so may increase the risk of each transaction.

Featuring Same Day ACH

Dwolla supports Same Day ACH credits, or funds initiated from the sender’s balance to a receiver. This is an excellent way for platforms paying out end users, the gig/sharing economies, marketplaces, payroll companies and others to differentiate themselves, optimize business processes and improve their end-user experiences.

Businesses taking advantage of Same Day ACH credit transfers do so on a per transfer request basis. The Same Day ACH feature shortens the ACH processing window, allowing users access to funds faster and is an affordable way for businesses to come close to instant ach transfers.

Standard Plus Same Day Timeline

Benefitting from Next Day ACH

Another expedited option we offer is Next Day ACH transfers. This feature is offered to approved Dwolla clients who are assessed on several elements to ensure it is an appropriate fit for their business case. As mentioned previously, with faster transfer times comes an increased risk for the business.

With Dwolla, a Next Day bank transfer refers to only the debit portion of a transaction from a bank account to the Dwolla Network. With Next Day ACH, a transfer initiated before 4 p.m. on Monday becomes available within the Dwolla Network on Tuesday. Conversely, a standard ACH debit would make the funds available in the Dwolla Network closer to Thursday or Friday.

While this is still not an instant ACH transfer, this feature does help businesses speed up the transfer of funds.

Next Day Plus Same Day Timeline

Anticipated Growth

Dwolla values building products that leverage leading-edge technology and we are committed to transforming the payments industry. The ACH Network continues to be the most reliable form of payment system formed on the foundation of the United States payments industry since its establishment in 1972. Working as a preferred partner of Nacha, Dwolla looks forward to continuing to make significant strides towards real-time payments with this group to ultimately support clients.

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