Payment settlement

ach transactions, whether debit or credit, typically settle within 1–3 business days some payments may settle the same day if originated as same day ach settlement timing depends on same day vs standard submission entry type (credit vs debit) federal reserve processing windows and operating hours batch processing cut offs ach payments settle only on bank business days no settlement happens on weekends or federal holidays credit entries an ach credit occurs when an originator instructs their bank ( {{odfi}} ) to push funds to a receiver’s account at another financial institution ( {{rdfi}} ) posting and availability funds availability is determined by the settlement date in the company/batch header record rdfis must make funds from credit entries available to receivers by the settlement date standard ach credits certain requirements apply for standard ach credits the credit must be delivered to the rdfi by the ach operator no earlier than two banking days prior to settlement date it must be posted (or memo posted) by opening of business on the settlement date funds must be available for withdrawal no later than 9 00 a m local time on the settlement date if received by 5 00 p m the prior business day these requirements apply for all sec codes same day ach credits for same day credits, these requirements apply the credit must be delivered to the rdfi on the settlement date funds become available according to these deadlines (depending on when sent) first same day window → by 1 30 p m local time second same day window → by 5 00 p m local time third same day window → posting required on the settlement date withdrawal availability may be deferred until the next day exception if the rdfi reasonably suspects the credit is unauthorized, it may delay availability subject to legal requirements, but must promptly notify the odfi debit entries an ach debit occurs when an originator instructs their bank (odfi) to pull funds from a receiver’s account at another financial institution (rdfi) standard ach debits certain requirements apply for standard ach debits credits are made available to rdfis no earlier than one banking day before settlement date rdfis may not post debit entries prior to the settlement date same day ach debits for same day debits, these requirements apply the debit must be delivered to the rdfi on the settlement date the debit must not be posted prior to the settlement date nacha settlement rules standard credits settle in 1–2 business days standard debits settle on the next business day same day entries settle on the originated date, if submitted before the ach operator deadline (fedach cut off 4 45 p m et) same day ach limits maximum transaction value $1,000,000 only eligible for domestic payments (no international transactions) ach transactions may still be returned for reasons such as insufficient funds or unauthorized activity consumer unauthorized debits can be returned for up to 60 calendar days under nacha rules finality of settlement is therefore subject to nacha return windows