What are ACH payments?
ACH payments are electronic bank-to-bank transfers in the United States sent through the Automated Clearing House (ACH) Network. Payments are grouped into batches and settled several times a day. Businesses use ACH credits to pay staff and suppliers and ACH debits to collect from customers, usually at a lower cost than wires or cards.
Also calledACH transferAutomated Clearing Housedirect deposit
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- Run by
- Federal Reserve and The Clearing House
- Same Day ACH limit
- $1 million per payment
- 2025 volume
- 35.2 billion payments, $93 trillion
How ACH payments work
The network is governed by Nacha, which writes the rules, and run by two operators, the Federal Reserve and The Clearing House, which exchange payments between banks. A business sends a file of payment instructions to its bank, the originating institution, which passes it to an operator for delivery to the receiving banks. Payments can settle on the same business day or the next, and the sender can schedule ACH credits up to two business days ahead. Same Day ACH, with three settlement windows each banking day, handles payments of up to $1 million each. In 2025 the network carried 35.2 billion payments worth $93 trillion. Payments do not settle at weekends or on federal holidays. Returns, such as for insufficient funds or closed accounts, follow set reason codes and time limits. AP and payroll software create ACH files or send payments through banking partners.
Common questions
How long does an ACH payment take?+
Same day or next business day for most payments. Same Day ACH settles within the day at one of three settlement times; payments do not settle at weekends or on federal holidays.
What is the difference between ACH and a wire transfer?+
ACH is batched and cheaper, suited to payroll and routine supplier payments. A wire is sent individually through Fedwire, settles within minutes and costs more, so it is used for urgent or large payments.
What is an ACH return?+
A payment sent back by the receiving bank, for example because the account is closed or has insufficient funds. Each return has a reason code and must be made within set time limits.
Software that sends ACH payments
BILLAP and AR automation with approvals, payments and accounting sync.Profile →
TipaltiGlobal payables with supplier onboarding, tax and mass payouts.Profile →
RampCorporate cards, expenses and bill pay with savings insights.Profile →
GustoPayroll, benefits and HR built for small businesses.Profile →
CentimeAP, AR, forecasting and banking in one cash flow view.Profile →Part of Accountio’s accounting technology coverage · Glossary
