Please note - not all platforms offer ACH as a payment method type. Please contact your platform directly for any questions around this offering. 

What is an ACH Payment?

ACH (Automated Clearing House) is an electronic payment network that processes batches of credit and debit transactions in the United States. ACH payments allow money to be transferred directly between bank accounts without using paper checks, credit cards, or wire transfers. Instead, your payee can provide a routing and account number in place of a credit card number.

Common ACH Payment Types:

• Direct deposits (payroll, government benefits)
• Bill payments (utilities, mortgages, subscriptions)
• Business-to-business payments
• Online purchases and recurring payments
• Person-to-person transfers

How ACH Payments Work

ACH payments move through a multi-step process:

1. Initiation: You (the merchant) initiate the payment request
2. Batching: JustiFi collects ACH requests throughout the day
3. Submission: Batched payments are submitted to the ACH network
4. Processing: The ACH network routes payments between banks
5. Settlement: Funds are transferred and made available

ACH Settlement Timeframes

Standard ACH Processing

Business Days Required: 2-3 business days

• Same-day submission: If submitted before daily cutoff (8:00 pm CT), processing begins that day
• Next-day submission: If submitted after the cutoff, processing begins the next business day
• Weekends and bank holidays: Do not count as business days

Typical Timeline Examples

Monday Payment (before cutoff):

• Payment Marked Successful: Thursday (will then be batched into a payout)

Weekend Payment:

• Processing Begins: Monday (next business day)
• Payment Marked Successful: Thursday(will then be batched into a payout)

Holiday Payment:

• Processing begins: Next business day after holiday
• Payment Marked Successful: Follows normal 2-3 day timeline (will then be batched into a payout)

Factors That Can Affect Settlement Times

Bank-Specific Policies

• Some banks may hold funds for additional business days
• New account relationships may have extended hold periods
• Large transaction amounts may trigger additional review by the bank

Transaction Details

• Returns and rejections: Failed ACH payments can delay settlement by 2-3 additional business days
• Account verification: First-time payments may require additional validation

Timing Considerations

• Daily cutoff times: Late submissions push processing to next business day
• Banking holidays: Federal holidays pause ACH processing until the next business day
• Weekend processing: Weekend ACH processing delays to the following business day

Frequently Asked Questions

Q: Why do ACH payments take longer than credit card payments? 
A: ACH payments are processed in batches rather than individually, and go through additional banking verification steps for security.

Q: What happens if an ACH payment fails? 
A: Failed payments (returns) are typically reported within 3 business days and may result in additional fees.

Q: Are there limits on ACH payment amounts? 
A: While the ACH network can handle large amounts, individual banks and processors may set their own limits.