• According to Nacha rules, settlement happens the day after the transaction is initiated.

• Nacha operating rules require standard ACH credits to settle in 1-2 business days.

• ACH debits settle the next business day.

• There is no settlement on weekends or federal holidays.

• Same day settlement happens on the same day as the transaction is originated.

  • The entry must be processed by FedACH before 4:45pm EST for it to be settled on the same day.

• Domestic transactions must be less than $1,000,000

• Same day ACH transactions with an international leg are ineligible

• Transactions can take up to 90 days to finalize.

  ACH transactions may be rejected because of non sufficient funds or because it is unauthorized, for up to 90 days after the date of the transaction

Originator

The Originator is the party - individual or company - that originates a credit, debit, or non-monetary entry into the ACH payment system for receipt by the Receiver account.

The Originator must have an arrangement with the ODFI directly or through a third-party sender and an authorization from the Receiver to initiate the transaction.

Originating Depository Financial Institution (ODFI)

The ODFI is the financial institution that originates the payment and forwards it to the ACH Operator.

ACH Operator

The ACH Operator receives entries from ODFIs, sends the entries to appropriate RDFIs, and performs settlement functions for the financial institutions.

The two primary ACH Operators in the US are the Federal Reserve Bank (FedACH) and the The Clearing House (EPN).

Receiving Depository Financial Institution (RDFI)

The RDFI is the financial institution that receives the credit or debit entry from the ODFI and posts it in the receiver account.

Receiver

The receiver is the party - individual or company - that receives the debit or credit entry.

Third-party service provider (optional)

A third-party service provider acts on the behalf of the originator, ODFI, or RDFI regarding ACH entries and transactions. This includes creating ACH files for an originator or ODFI and acting as a sending or receiving point for an ODFI or RDFI.

A third-party sender acts on behalf of the originator when there is no agreement between the ODFI and originator for ACH origination services. A third-party sender is never the originator for entries it transmits on behalf of another organization. A third-party sender of entries may be an originator of other entries.

Cross River can act as the ODFI for outbound ACH transactions or the RDFI for inbound ACH transactions.

All parties in an ACH transaction must comply with the Nacha rules.

Posting entries and funds availability are determined by the Settlement Date in the Company Batch Header Record.

Standard ACH credit entries

Standard ACH credits are made available to the RDFI by the ACH Operator no earlier than two banking days prior to the Settlement Date. It is recommended that credits be posted or at a minimum, memo-posted, prior to opening of business on Settlement Date. However, credit entries can be posted prior to the Settlement Date if the RDFI cannot warehouse the entry. The RDFI should consider the effect of posting credits and making funds available to the Receiver prior to the date on which the RDFI receives settlement for those credits.

The Nacha Operating Rules require that credit entries be made available for withdrawal by the customer on the Settlement Date. An RDFI can satisfy this obligation by making the entry available for withdrawal at the RDFI teller facilities by the close of business on the Settlement Date or at an ATM by midnight on the Settlement Date.

The RDFI must make funds available for withdrawal or cash withdrawal for any standard processing credit entry:

• No later than 9 am. (RDFI local time) on the Settlement Date.

• The entry is made available to the RDFI by the ACH Operator no later than 5:00 pm. RDFI local time on the banking day prior to the Settlement Date.

This rule applies to all credit entries that meet the timing requirement, regardless of Standard Entry Class Code. An entry or entry data is made available to an RDFI or its receiving point when the entry or entry data is processed by the RDFI ACH Operator and is ready for distribution.

Same-day processing ACH credit entries

Same-day processing ACH credits will be delivered to the RDFI on the Settlement Date.

• RDFIs must generally make available for withdrawal the amount of a same-day credit entry received in the first same-day processing window.

• They must do this no later than 1:30 pm. RDFI local time on the Settlement Date.

For a same-day credit entry received in the second same-day processing window, most RDFIs are required to make funds available for withdrawal no later than 5:00 pm. RDFI local time on Settlement Date.

Standard processing ACH debit entries

Standard processing of ACH debits will be made available to an RDFI no earlier than one banking day prior to the Settlement Date.

Same-day processing ACH debit entries

Same-day processing of ACH debits will be made available to the RDFI on the Settlement Date. The Nacha Operating Rules prohibit RDFIs from posting debits prior to the Settlement Date.

For more detailed information on the ACH processing schedule, see here.

ACH transactions only settle on business days (no settlement on weekends or federal holidays). Transactions only occur on business days (no support on weekends or banking holidays).

The SEC transaction code for international transactions with a foreign leg is IAT. This code indicates to organizations in the transfer chain that the payment is international. This includes payments that began in foreign countries and are converted to ACH transactions within the US and payments that ultimately complete abroad. In either case, Cross River passes information to the intermediary FI and not to the overseas FI.

If you want to transfer funds internationally using CR and ACH, CR transfers the funds to a US bank that can do international transfers. And if you want to receive funds from outside the US using ACH, the funds will first be transferred to a US bank that can do international transfers, and from there be transferred to CR.

Any payment over the ACH network that originates or ends in a foreign FI must use the IAT SEC code. The CR service type will always be Standard.

Standard

Standard processing of ACH debits is made available to an RDFI no earlier than one banking day prior to the Settlement Date.

Same day

Same day ACH transactions debit and credit funds on the same day that the transaction is initiated. This makes the funds available to the RDFI on the settlement date. The Nacha Operating Rules prohibit RDFIs from posting debits prior to the settlement date. There is a limit of $100,000.00 per Same Day ACH transaction.

Domestic IAT

IAT is a Nacha SEC code. Cross River can originate or receive IAT payments to or from the US intermediary FI of an account at an FI outside the US. Cross River passes information to the intermediary FI. See International ACH support.

• Any transaction tied to an ACH payment executes on the effective date of the payment.

• The serviceType (either Standard or Same Day) and the configured cutoff time influence the effective payment date.

  Example

  • A Same Day payment originates on Tuesday, 8/24 at 12 pm. The cut off time is configured for 1 pm. The effectiveDate of the payment is 08/24.

  • A Same Day payment originates on Tuesday, 8/24 at 3 pm. The cut off time is configured for 1 pm Same Day cutoff. The effectiveDate of the payment is 08/25 because the payment originated after the cutoff time. The service type remains SameDay in the system, despite the next-day effective date.

  • A Standard payment originates on Tuesday, 08/24. The effectiveDate of the payment is 08/25.

• When the payment is released to the Federal Reserve and receipt of payment is acknowledged, we execute the transactions on the payment effectiveDate.

Cross River time windows

Cross River batch-sends files received throughout the day. To process a payment for any time window, the files must go through the due diligence process before the cutoff time.

Hold days

ACH allows FIs to delay the availability of credits to accounts which results from outbound pull payments. This ensures that funds are available before the transaction is approved. This helps prevent losses that result from returned outbound pull payments. Hold days use a business day logic and start with the effective date of the ACH payment.

When a pull transaction return occurs during the hold period, the hold is manually removed. This is done to net the credit to the account holder for the outbound pull payment with the debit resulting from the ACH return.

You can determine when funds will be available in your account by reviewing the details of the schedule included in the payment core transaction.

Examples

1. Locate the coreTransactionId for the payment.

Copy

Sample Get Payment by ID

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{
  "id": "89f83e89-806e-4b59-a02e-e71fa5c079fc",
  "accountNumber": "2223334445",
  "referenceId": "A123Z456C78A",
  "paymentType": "Origination",
  "direction": "Outbound",
  "status": "Complete",
  "source": "Api",
  "postingType": "Individual",
  "fedBatchId": "8719a7b1-f32d-4b7f-a2cc-e713a3ee86a5",
  "fedBatchSequence": 61,
  "coreTransactionId": "eb2f24bb-f25e-4fd7-b628-bc82d8b92cc3",
  "memoPostId": "14ba1090-eff6-4fae-8d73-968c6276a2fb",
  "postingCode": "OK",
  "posting": "Posted",
  "originator": {
    "routingNumber": "021214891",
    "accountNumber": "2223334445",
    "accountType": "Checking",
    "name": "Upgrade CRB",
    "identification": "5555512345"
  },
  "receiver": {
    "routingNumber": "026009593",
    "accountNumber": "42424242652",
    "accountType": "Checking",
    "name": "Bob Smith"
  },
  "secCode": "WEB",
  "description": "Transfer",
  "transactionType": "Pull",
  "amount": 100,
  "serviceType": "SameDay",
  "extendedDetails": {
    "paymentType": "0"
  },
  "effectiveDate": "211124",
  "traceNumber": "021214899990142",
  "wasReturned": false,
  "wasCorrected": false,
  "holdDays": 3,
  "original": {
    "paymentId": "89f83e89-806e-4b59-a02e-e71fa5c079fc"
  },
  "createdAt": "2021-11-23T13:49:34.907-05:00",
  "processedAt": "2021-11-23T17:34:29.123-05:00",
  "completedAt": "2021-11-24T01:54:29.593-05:00",
  "postedAt": "2021-11-24T01:54:29.593-05:00",
  "partnerId": "13eb292e-cb33-402a-af11-610b0955dbc1",
  "productId": "45be4bca-d962-4105-8e54-df9146649598",
  "lastModifiedAt": "2021-11-24T01:54:29.5947471-05:00"
}

2. Use the coreTransactionId in the GET /core/v1/transactions/{id} endpoint to view the availability schedule.

   The schedule is displayed in the schedule attribute.

   Copy

   Sample Get Transaction by ID

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   {
     "id": "eb2f24bb-f25e-4fd7-b628-bc82d8b92cc3",
     "traceNumber": "T222271777297136J",
     "status": "Complete",
     "debit": {
       "transactionType": "Debit",
       "accountType": "GeneralLedger",
       "masterAccountNumber": "123456789",
       "subAccountNumber": "123456789",
       "partnerId": "13eb292e-cb33-402a-af11-610b0955dbc1",
       "productId": "45be4bca-d962-4105-8e54-df9146649598",
       "result": {
         "success": true,
         "code": "OK",
         "message": "OK"
       }
     },
     "credit": {
       "transactionType": "Credit",
       "accountType": "Deposit",
       "masterAccountNumber": "2223334445",
       "subAccountNumber": "2223334445",
       "partnerId": "13eb292e-cb33-402a-af11-610b0955dbc1",
       "productId": "45be4bca-d962-4105-8e54-df9146649598",
       "result": {
         "success": true,
         "code": "OK",
         "message": "OK"
       }
     },
     "transactionCode": "Outgoing ACH",
     "amount": 100,
     "currency": "usd",
     "description": "Bob Smith TRANSFER ACH WEB REF: A123Z456C78A",
     "rail": "Ach",
     "railId": "payment/89f83e89-806e-4b59-a02e-e71fa5c079fc",
     "flags": [
       "DIR:Outbound",
       "TYP:Origination",
       "FRC"
     ],
     "schedule": [
       0,
       0,
       0,
       0,
       0,
       0,
       100
     ],
     "proposedAt": "2021-11-23T17:34:29.347-05:00",
     "executedAt": "2021-11-24T01:54:29.51-05:00",
     "effectiveAt": "2021-11-24T01:54:29-05:00",
     "lastModifiedAt": "2021-11-24T01:54:29.511742-05:00"
   }

   The schedule always displays the total number of values equal to the number of calendar days from when the funds are held to when they are made available.

Example in further detail

In the example response above, there are 7 values in the schedule because there are a total of 7 calendar days from 11/24 to 11/30.

Since the effective date is Wednesday 11/24/2021, the funds will be available on Tuesday 11/30/2021, because the number of pull hold days configured for this account is 3. This means the funds will be held for 3 business days:

Wednesday 11/24

Friday 11/26

*Monday 11/29

Here's a more detailed breakdown of the schedule that's illustrated in the sample code above:

Calendar Date	Hold Day	Amount Available
11/24/2021	1	$0
11/25/2021	N/A - Federal Holiday	$0
11/26/2021	2	$0
11/27/2021	N/A - Weekend/Non-Business Day	$0
11/28/2021	N/A - Weekend/Non-Business Day	$0
11/29/2021	3	$0
11/30/2021	Funds become available	$1.00

Once a batch is accepted, it will be broken into individual payment records that may go on hold or be sent to the Federal Reserve independently. Webhook events will be fired as usual on each of these individual payments. The overall payment workflow is identical to that of payments originated individually.

It is important to note that client batch origination requests are asynchronous and the associated payment records may not be available immediately. You can monitor the progress via the status and importCount fields of the batch object.

The ACH API supports the following SEC codes:

Common Nacha to API field mappings