From paying your employees, to paying your bills online—the Automated Clearing House (ACH) payments are just about everywhere.
And not too long ago, the National Automated Clearing House Association (Nacha) rolled out same-day ACH payments. These payments allow money to flow from one bank account to another with same-day processing, allowing for faster settlement times for payments. The option has caught on fast: same-day ACH moved 1.4 billion payments worth $3.9 trillion in 2025, up 16.7% in volume over the prior year (Nacha).
Having the option for faster payments using same-day ACH has drastically improved things for businesses and consumers alike. If you bank with us here at Relay, you have the option of sending either same-day or next-day ACH payments, so we put together an overview of everything you need to know about this payment method.
What is ACH?
ACH, or Automated Clearing House, was established to allow different banks to transfer funds electronically. It is an electronic batch processing system that banks, such as the Federal Reserve banks and other financial institutions, use to bundle transactions for processing.
The ACH network, governed by the National Automated Clearing House Association (Nacha), is used for many direct deposit and payment transactions, such as payroll and bill payments. However, until same-day ACH was introduced, the funds would take a few days to settle.
"Settling" is the process of banks matching their debits and credits between each other, in bulk. When the numbers match, these financial institutions settle what they owe each other at once. This is done in bulk because matching every single payment individually would make the cost of payment processing prohibitively expensive. Because of this bulk matching, ACH payments are cheaper than other types of transactions.
What's the difference between ACH and same-day ACH?
Same-day ACH simply means that banks settle payments multiple times per day, whereas regular ACH payments are settled at multiple points throughout the week.
How does ACH work?
At a basic level, a single ACH transaction is simply an electronic file that contains some information. This includes things like the amount, where the transaction comes from, where it's going, and other relevant data. Every day, numerous such files are sent from each bank (known as the "originating depository financial institution, or ODFI) to the ACH network.
After the ACH network has collected these files, ACH operators then rebundle and transfer them to what are known as "receiving depository financial institutions" or RDFIs. In plain terms, you can think of RDFIs as banks (and other financial institutions) that have agreed to adhere to certain responsibilities when it comes to accepting ACH. These responsibilities include things like accepting and validating received ACH entries, and promptly notifying originators (or ODFIs) about any incorrect information on entries.
ACH payment processing timelines
ACH payments can take a few days to process—typically one to two. There are also cut-off times each day when a transfer will not be settled and processed until the next day. This processing window can also be delayed if an error code is returned, such as insufficient funds.
Additionally, "same-day" isn't instant. There are meticulous schedules for when transactions batch and settle each day. The Federal Reserve has a same-day ACH resource center that details posting times (when funds move) for various types of ACH transactions. Cut-off times may also vary depending on both the originating and accepting institution.
Here are the cut-off times for different types of payments for Relay customers as an example:
Outgoing Transaction Type | Cut-Off Time | Est. Settlement Time |
|---|---|---|
Regular ACH | 3:00 p.m. PST / 6:00 p.m. EST | 1-2 business days |
Same Day ACH | 12:00 p.m. PST / 3:00 p.m. EST | Same business day |
Domestic Wire | 10:00 a.m. PST / 1:00 p.m. EST | End of same business day if sent before cut-off; end of next business day if sent after cut-off |
International Wire | N/A | Varies. Approximately 2-5 business days |
Check sent by mail | 3:00 p.m. PST / 6:00 p.m. EST | 8-10 business days |
When does same-day ACH actually settle? The three daily windows
Same-day ACH settles three times on every banking business day. Your bank submits your payment into one of three network windows, and the funds are made available to the recipient at that window's settlement time. In Eastern time, the schedule runs (Federal Reserve):
Submit by 10:30 a.m. ET → funds settle by 1:00 p.m. ET
Submit by 2:45 p.m. ET → funds settle by 5:00 p.m. ET
Submit by 4:45 p.m. ET → funds settle by 6:00 p.m. ET (the third window, added in March 2021, Nacha)
These are the network's deadlines. Your own bank sets an earlier internal cut-off so it has time to batch and submit—that's why Relay's same-day cut-off in the table above (3:00 p.m. ET) lands before the network's final window. Miss your bank's cut-off and the payment simply moves to the next window, or the next business day.
Does same-day ACH run on weekends and holidays?
No—same-day ACH runs only on banking business days, not weekends or federal holidays (Federal Reserve). A payment you submit after the last window on Friday, or any time over the weekend, will settle on the next business day (usually Monday, or Tuesday after a Monday holiday). If a same-day transfer has to land on a specific date, count backward from that date's windows—not the calendar day you send it—and remember that international (IAT) ACH entries aren't eligible for same-day processing at all.
Benefits of using ACH over other payments
So, why would you want to send ACH payments over something else?
Lower transaction costs—Business-to-business ACH payments are one of the most cost-effective payment methods and can help merchants save on their processing fees. ACH payments vary by processor and bank but usually cost under $1, regardless of the amount paid. (Though you pay a small premium for same-day ACH.) In comparison, credit card transactions cost around 2% of the payment amount and wire transactions can cost between $10 to $35 per transaction.
Reduced payment failures—Credit cards can easily be lost, stolen, or expire, so setting up electronic ACH payments reduces the risk of any payment failure. Once account numbers are set up correctly, all transactions go through except in the event of insufficient funds.
Security—ACH payments are more secure than manual transactions due to both parties setting up recurring payments rather than requesting payment information each time. For instance, when you direct deposit employee pay via ACH, instead of a paper check, you save yourself the time and potential error of manually writing a check during each pay period. ACH also mitigates many common security issues such as misused credit card information, wire transfers sent to the wrong recipients, and cash theft.
Recurring transactions—Recurring transactions are convenient for both parties and can help automate and speed up accounts payable. Customers don't have to worry about missing a payment, and businesses don't have to constantly remind customers to pay.
The implementation of same-day ACH
In 2016, Nacha debuted same-day ACH credits and in 2017 introduced same-day ACH debits. Suddenly, businesses were able to send up to $25,000 across the United States in one day.
In 2020, the same-day ACH dollar limit per transaction rose from $25,000 to $100,000.
In March 2022, the per-transaction limit jumped again to $1 million—still the ceiling today—and same-day ACH now settles across three windows each business day. An entry over $1 million isn't rejected; it simply rolls to next-day settlement. Nacha has proposed raising the limit to $10 million, but that change is still out for comment and not yet in effect (Nacha).
The ACH network keeps growing to meet the need for fast, efficient payments: same-day volume reached 1.2 billion payments worth $3.2 trillion in 2024, a 45.3% jump in volume year over year (Nacha).
Benefits of same-day ACH processing
Same-day ACH services haven't been around for very long, but they've already significantly impacted how people manage their finances. You likely regularly use ACH, but how does this same-day transaction method benefit business owners like you further?
Improve cash flow forecasting and cash flow management—Many small businesses rely on fast settlement windows on invoice payments to improve cash on hand. If you're stuck in net 30-90-day payment terms, liquidity is an issue. Setting up ACH agreements with clients reduces the need for interest-bearing funding (lines of credit, credit cards, etc.). Plus, the money is in the account the same business day.
Faster account-to-account transfers—If you use multiple bank account budgeting, ACH improves reporting accuracy. Companies who move money from a primary account to a sub-account, or pay a credit card bill, want their accounts to reflect these transactions as quickly as possible.
High transaction limit—Service-based businesses sometimes have 5 and 6-figure transactions, incoming and outgoing. Getting same-day settlement can improve cash flow significantly. And having the option to send same-day payments to your vendors can sometimes help you avoid hurting those vendor relationships.
Reduce cost for expedited payments—Same-day ACH saves you money when you need a payment to reach someone ASAP. For instance, if you really need to get material headed your way, sending the vendor a same-day ACH is much cheaper than other forms of payment.
Same-day payroll—Where would you be without your team? Small business employees who know that money will hit their accounts on payday is an important element of trust and job security. Same-day payroll ACH helps you ensure that your team gets paid on time.
Send same-day ACH transactions with Relay
If you're looking for a business banking solution that lets you send same-day ACH payments and gives you full control over your day-to-day money management, consider trying out Relay.
Relay is an online banking and money management platform built to keep small business owners on the money, and make sure you understand exactly what you're spending, earning and saving. You can apply for an account online in as little as 10 minutes: sign up here.
Frequently asked questions
How long does same-day ACH take?
If you meet your bank's cut-off, funds are made available to the recipient the same business day—by 1:00 p.m., 5:00 p.m., or 6:00 p.m. ET depending on which of the three network windows your payment lands in. Standard ACH, by contrast, typically settles in one to two business days.
What is the same-day ACH limit?
$1 million per transaction, effective since March 2022. Entries above that amount aren't rejected—they roll to next-day settlement instead. Nacha has proposed raising the limit to $10 million, but that isn't in effect yet.
Does same-day ACH cost more than standard ACH?
Yes, but only slightly. Same-day ACH carries a small per-transaction premium over standard ACH, which itself usually costs under $1. Even with the premium, it's far cheaper than a wire ($10-$35) or card processing (around 2% of the amount).
Can I send a same-day ACH on the weekend?
No. Same-day ACH processes only on banking business days. A payment submitted over a weekend or a federal holiday settles on the next business day.
