The Automated Clearing House (ACH) is an electronic funds-transfer system that facilitates payments. ACH is run by the National Automated Clearing House Association (Nacha), the governing organization of ACH networks. There are two ACH networks in the US: FedACH and EPN. FedACH is the Federal Reserve Bank's ACH service and handles public transfers. EPN is The Clearing House's ACH Service and only handles private transfers.

ACH is a common payment method, typically used for direct deposits and bill payments.

ACH offers two services for domestic transactions:

  • Same Day: The ACH transaction is processed and settled on the same business day. There is a limit of $1,000,000.00 per Same Day ACH transaction.

  • Standard: The ACH transaction is processed but settles on the next business day. Credit transactions may be processed up to two business days prior to the settlement date.

An ACH transaction is either a push or pull depending on your role in the transaction. Both the originator and the receiver can push or pull funds.

  • The Originating Depository Financial Institution (ODFI) sends fund or sends a pull requests (to receive money)

  • The Receiving Depository Financial Institution (RDFI) receives funds or receives a pull request (to send money)

Difference between Same Day ACH (SDACH) and Instant Payments (RTP/FedNow)

Same Day ACH payments are cleared in batches and settle after the payments clear.

Instant Payments clear and settle individually in real time immediately.

Nacha settlement rules and limitations

ACH parties

Credit entries

Debit entries

Common ACH Standard Entry Class (SEC) codes

International ACH support (IAT)

ACH addenda records

ACH addenda records provide supplemental data to identify an account holder or provide information about the payment. This may include details such as invoice numbers.

ACH at Cross River

The Cross River ACH API allows you to both originate and receive payments through the Federal Reserve ACH network. We receive your transaction details as an API call, process them, and release them to the Federal Reserve. The API set includes endpoints and webhooks. We can process ACH transactions sent as:

  • An API call for a single payment

  • An API call for multiple payments (batch)

Cross River validates the payments before releasing them to the Federal Reserve. The transaction is sent to the Federal Reserve and is routed to the designated FI.

  • ACH transactions settle on business days. There is no settlement on weekends or federal holidays.

  • Transactions occur on business days. There is no support on weekends or banking holidays.

Supported transaction types

Account settlements and time windows

Client batches

Business reference information