Nacha—the nonprofit association that oversees the ACH Network—has announced that the Same Day ACH transaction limit will increase from $25,000 to $100,000 as of March 20, 2020. 

Same Day ACH transfers are a highly adopted transfer speed among businesses using ACH for payments. Since September of 2016, Nacha mandated that every U.S. financial institution make themselves capable of receiving Same Day ACH credits. This phase allowed businesses—with access granted by their financial institution—to send same-day payment transfers and enjoy faster payments using the ACH Network. 

In 2019, consumers and businesses sending payments through the ACH Network initiated more than 250 million Same Day ACH transactions—totaling $247 billion, according to Nacha. Approximately 98 percent of all ACH transactions were less than $25,000, but this limit was never high enough for organizations that rely on sending or receiving larger ACH transactions. 

Higher transaction limits add great benefits to the ACH Network for businesses doing cash concentration and disbursements (CCD) through the ACH Network, as well as many other use cases.

In addition to the changes to the transaction limits, Nacha announced it would expand access to Same Day ACH by creating an additional processing window. Currently, the latest that an ODFI can submit Same Day ACH transactions is 2:45 pm ET. The new processing window will allow Same Day ACH files to be submitted until 4:45 pm ET. These changes will go into effect on March 19, 2021.

For additional information on Same Day ACH rule changes, use this resource from Nacha. 

ACH Transfer Speeds

Answering the question, “How long will this ACH transfer take?” requires understanding what type of transaction is being initiated—and when the payment was initiated. 

ACH transactions with Dwolla are broken into two smaller transactions: from the sender to the Dwolla Network, then from the Dwolla Network to the receiver. 

A standard ACH debit through Dwolla is made available three to four business days after being initiated. Once funds are made available in the Dwolla Network, the credit to the recipient takes place; funds become available on the following business day—completing the ACH transaction. 

With Dwolla, transaction timing can be expedited and utilizing the Dwolla Balance feature allows transaction times to be dramatically shortened. 

Custom Transaction Limits

Determining the appropriate limits for sending and receiving payments is something that Dwolla works closely with clients on to best fit their needs. Dwolla works to understand every business’ use case and funds flow to unlock the best experience possible with Dwolla’s bank transfer API. This means setting custom transaction limits for verified users. 

Dwolla’s bank transfer API provides businesses with everything from bank account verification tools to webhooks, making it easy to send custom communications to users around account activity or payment status. And because the Dwolla API is white labeled, clients have the flexibility for customization—making no two integrations the same.

Each customer is empowered to build their integration with the appropriate payment flow(s) and tailor the user experience to fit their brand. Clients are also able to select from more elite platform features, such as expedited transfer speeds or higher transaction limits for a more enhanced experience.

Scalable Technology

We’ve built our payment API to be future ready to support new transfers times, like Same Day ACH, as well as new transfer types. We’re well-acquainted with the ACH Network and well-positioned to help your business manage Same Day ACH functionality.

Get started on designing your ideal bank transfer integration and learn how your business can get ahead with some of our expanded features.

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