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:
- New Year’s Day
- Martin Luther King Jr. Day
- President’s Day
- Memorial Day
- Independence Day
- Labor Day
- Columbus Day
- Veterans’ Day
- Thanksgiving Day
- Christmas Day
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 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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