By: Mariah Young,

At Dwolla, we pride ourselves on connecting businesses and platforms to the ACH network—we make it straightforward and simple. One thing that we want to make sure is straightforward and simple to understand is banking holidays and how they can impact all types of ACH payments.

The following is a list of U.S. banking holidays:

As we said, the holidays listed above are all recognized as banking holidays by the Federal Reserve System, which means that on these days of the year banks are closed and not operating in their normal capacity. This closure may impact your payment processing times.

Banking Holiday’s Impact on ACH Payments

Typically when you initiate your ACH payment, it clears in 3-4 businesses days or 1-2 business days for Dwolla Next Day transactions, and 1 business day for Same Day ACH. Similar to initiating a payment on a typical weekend, if you’re initiating your payment on a banking holiday these clearing times will be delayed and the payment will initiate on the next business day.

For example, if you initiate a payment on Christmas Day that falls on Tuesday, it won’t actually initiate until Wednesday, the next operating business day. In addition, if a banking holiday falls on a Saturday or Sunday, it could also affect your payment clearing date. For example, if a federal holiday falls on a Saturday, it is usually observed on the preceding Friday. Likewise, when the holiday falls on a Sunday, it is usually observed on the following Monday.

When working with ACH payments, it’s important to understand the ins and outs of the ACH system.

Dwolla’s Access API can help; our support team will make sure you’re notified of potential issues including banking holidays. We’ll also make sure you’re notified of potential positive developments in the ACH network, like Same Day ACH.

Looking for more information about our payments API? Reach out below!

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Financial institutions play an important role in the Dwolla network.

Dwolla, Inc. is an agent of Veridian Credit Union and Compass Bank and all funds associated with your account in the Dwolla network are held in pooled accounts at Veridian Credit Union and Compass Bank. These funds are not eligible for individual insurance, including FDIC insurance and may not be eligible for share insurance by the National Credit Union Share Insurance Fund. Dwolla, Inc. is the operator of a software platform that communicates user instructions for funds transfers to Veridian Credit Union and Compass Bank.