How Long Does An ACH Transfer Take In 2026?

ACH transfers are a popular form of electronic payment in the United States, with an average of 141 million transactions passing through its network each day, according to Nacha, its nonprofit governing body. But this currency transfer method has one major drawback. It can take multiple days for money transferred this way to reach its intended recipients.

In this article, you’ll learn how ACH transfers work and exactly how long the different types of ACH transfers take to decide if this option is right for your business.

What is an ACH transfer? 

An ACH transfer is a type of electronic funds transfer (EFT) processed through the Automated Clearing House, a network of financial institutions that reaches all US banks and credit unions. 

ACH transfers follow rules set by Nacha, formerly known as the National Automated Clearing House Association, a nonprofit governing the ACH network.

There are two main types of ACH transfers: credit and debit.

• ACH credits “push” money from an account at the originating depository financial institution (ODFI) to an account at the receiving depository financial institution (RDFI). An example of an ACH credit transaction is a payroll direct deposit, or ACH deposit.
• ACH debits “pull” money from an RDFI account into an ODFI account. This is the type of transfer used for bill payments, such as a monthly business insurance premium.

Same Day ACH was introduced in 2016 for credits and the following year for debits. Same Day is faster than a standard ACH transfer but carries an additional fee.

How ACH transfers work

ACH transfers use batching to efficiently move money between financial institutions. The exact process depends on transaction type (debit or credit). 

Here’s how ACH transfers work as an electronic payment method for business-to-business (B2B) orders in Shopify:

1. The store owner enables ACH transfers as a direct debit payment method from the Shopify Payments section of their Shopify Admin.

2. A B2B customer places an order and selects ACH direct debit as their payment method.

3. The customer authenticates their bank account through a secure interface.

4. After successfully linking their bank account, the customer selects the linked bank account at checkout to complete their purchase.

5. Shopify Payments initiates the debit transfer by sending payment instructions as an ACH file to its bank (the ODFI). At this time, the order’s payment status is set to “pending.”

6. The ODFI batches the transaction with other ACH transfers.

7. The ODFI sends batched transactions out to an ACH operator—either The Federal Reserve or The Clearing House—at regular intervals during the business day. 

8. The operator sends the payment instructions to the customer’s bank (the RDFI).

9. The RDFI withdraws funds from the customer’s account and pays the ODFI. It can take up to four business days for the store owner to receive confirmation of payment.

10. After the payment is settled, the funds are paid out to the store owner according to their set payout schedule.

How long does an ACH transfer take?

How long an ACH transfer takes depends on the type of transaction, but Nacha estimates that 80% of ACH transfers settle in one banking day or less.

Same day ACH transfers are settled on the same day. ACH credits must be settled no more than one banking day into the future, while ACH debits must be settled no more than two banking days into the future, per Nacha rules.

However, there are a few factors that can cause delays in ACH transfers, such as:

• Time of transfer initiation. Same-day fund transfers may appear in the recipient account the next business day if requested after a bank cut-off time or after its business hours.

• Weekends and holidays. If you initiate an ACH transfer on a weekend or a holiday, the bank will not process it until the next business day.

• Limits. Banks set limits for how much you can transfer per day or transaction. Multiple or larger transactions that surpass the limit can delay your transfer.

• Payment returns. Insufficient funds, incorrect account numbers, and closed accounts are a few reasons your payment may not go through and delay an ACH transfer.

Other types of transfers

While ACH is an incredibly common type of transfer in the US, it’s not the only option. Here are a few other ways to transfer money between banks and how these EFTS differ from ACH methods:

Wire transfers

With wire transfers, money moves directly from one bank or financial institution to another instead of getting batch-processed like with ACH. This makes wire transfers useful for large, one-time payments and time-sensitive transactions, but also more expensive than ACH.

Unlike ACH, which is only available in the US, wire transfers work for international payments.

SWIFT

The Society for Worldwide Interbank Telecommunication (SWIFT) sends secure instructions for global transactions to more than 11,000 financial institutions. With this system, each institution receives a unique identification code.

SEPA

SEPA, the Single Euro Payments Area, manages cashless payments within 41 European countries. Payments must be made in Euros, so this is only an option for Europe-based businesses.

More small business payment options

ACH payment processing in small businesses may be a more convenient or cost-efficient option for many types of transactions. Whether it’s direct deposit payroll, a way to accept payments online, or transactions where credit card processing fees eat into profit margins, it’s one to consider.

Payment flexibility overall is also becoming more important as businesses expand their service areas. Plus, cart abandonment data shows 10% of customers will leave if not enough payment methods are available online. 

This has created a rise in options like digital payments via mobile devices and mobile wallets. According to Statista, digital wallets account for about half of all global ecommerce transactions. 

Online stores are also offering buy now, pay later (BNPL) at the point of sale or checkout page. Shop Pay Installments, Klarna, and Affirm are among BNPL company app options.