How long does an ACH transfer take: A complete guide for businesses

ACH transfers explained: costs, timing, and benefits for businesses

When you’re paying vendors, running payroll, issuing refunds, or collecting recurring payments, you’re probably relying on ACH. Short for Automated Clearing House, ACH is the bank-to-bank network that facilitates the electronic transfer of money. Eliminating the need for paper, cards, or wires, ACH transfers are an excellent payment transfer option for modern businesses, and knowing how they work, how fast they finalize, and how you can access them can save your business time, money, and energy when it comes time to pay vendors, clients, and merchants.

Because ACH payments are settled through the Federal Reserve, they’re typically low-cost, dependable, and a secure choice for day-to-day business transactions. However, because ACH is batched, standard ACH transfers can take 1-3 business days. This lag can be a tradeoff, but options like same-day ACH can speed up the process. Alternatively, when timing is particularly critical, other transaction options, such as real-time payments, can further expedite the process.

In this guide, we’ll break down the process of making an ACH transfer, highlighting where expected delays and bank lags may occur. We’ll also highlight how Slash can let you move beyond those limits with faster payment options like real-time payments and wires, so you can transfer money in seconds instead of waiting on ACH batch windows.¹

What is an ACH transfer?

The Automated Clearing House (ACH) is a batch-based electronic payment network that facilitates the digital transfer of funds between bank accounts and credit unions. It’s often behind everyday bill payments, direct deposits, payroll, B2B account payables and receivables, refunds, and subscriptions. With ACH, rather than processing each transaction in real-time, the network collects multiple ACH transactions into batches and processes them several times per business day. That batching makes ACH transfers a more efficient and low-cost payment method, especially for recurring or high-volume activity, but it also means you’ll typically wait 1–3 business days for payments to settle.

ACH is overseen by NACHA, with two main operators: the Federal Reserve and The Clearing House’s Electronic Payments Network (EPN). It’s primarily domestic; international ACH payments (IAT) exists but is less common and slower. Compared to wire transfers, ACH payments are generally slower but cheaper and better suited for recurring activities. Wires, by contrast, are processed one by one, often on the same-day or sometimes within hours, and are a go-to option when you must send money urgently or cross borders.

ACH debit vs. ACH credit

You may see ACH transactions referred to as either an ACH debit or ACH credit. The difference lies in who is initiating the payment. Here’s a more comprehensive breakdown:

ACH credit is commonly referred to as a push. This is when the payer initiates payment from their account to the recipient (payee). ACH credit is most common for payroll, direct deposits, or tax refunds.
ACH debit is commonly referred to as a pull. This is when a payer authorizes the payee to withdraw from the payer’s bank account. ACH debit is a common method for subscriptions and recurring bill payments.

ACH vs. wire transfers (and other methods)

ACH transfers are one common payment transfer option. Wires are another. Both ACH and wires are Electronic Funds Transfer (EFT) methods, but they may serve different needs:

Speed. Standard domestic wires are processed individually and can land within hours, while standard ACH transfers are processed in batches, often taking 1–3 business days.
Cost. ACH transactions typically incur low fees per transaction, whereas wire transfers often cost more both domestically and internationally.
Use cases. ACH excels at domestic, recurring direct payments (payroll, paying bills, vendor payouts). Wires are best for urgent, high-value, or cross-border payments.
Reversibility. ACH has structured NACHA rules for returns (e.g., insufficient funds, account errors). However, wires, once settled, are typically irreversible.
Limits & geography. ACH is mainly U.S.-focused and may have transfer limits. Wires have higher (or no) limits and handle international payouts via networks like Fedwire (domestic) and SWIFT (international).

Other payment options include real-time payments. With Slash, you can send funds in seconds to eligible U.S. bank accounts that support RTP. This means you can sidestep ACH batch delays or the high fees associated with wire transfers.

Understanding the ACH payment process

How long your ACH transfer may take is dependent on the different steps through which your money passes through the process. Here’s a break down of the path an ACH payment follows from payer to payee:

Initiation. You or your payment processor submits a file to your bank with relevant banking and transaction details, including routing and account numbers, transaction amount, effective date, and whether it’s an ACH credit or ACH debit. This can happen via your bank portal or the Slash dashboard.
Batching. Batching is why ACH is inexpensive and easy for recurring payments and bulk payouts like payroll. During batching, the ODFI, or the Originating Depository Financial Institution acting as the ACH payment sender, groups outgoing ACH payments into scheduled batches, meaning your payment is grouped with other payments from other senders to then be processed collectively.
Processing. Batches then go to ACH operators (Fed/EPN) for processing. Operators perform risk and fraud checks and ensure NACHA compliance.
Settlement. Standard ACH entries typically settle between banks in 1–3 business days. Same-day ACH entries can settle on the same day if they meet the submission cut-offs and the receiving bank posts them on the same day. If there’s an issue like insufficient funds, incorrect account details, or fraud alerts, the receiving bank may return the entry, and the process time will be delayed.

How long does an ACH transfer take?

ACH transfers can take different times, depending on the type of ACH transfer you initiate and whether your transaction complies with banking regulations and NACHA compliance. Here’s a general breakdown:

Standard ACH. Standard ACH generally takes 1–3 business days but may be delayed due to incorrect information input, bank delays, or holidays.
Same-Day ACH. Same-day ACH is typically processed in one day (as the name suggests), but this may be delayed, subject to bank cut-off times, compliance, and posting policies.
IAT (International ACH). International ACH is slower, and can often take multiple days due to extra checks and exchanges. IAT may also be a more expensive option.

What affects ACH processing time?

Bank batch windows & cut-off hours. ACH runs on bank hours. Ensure you are posting payments within bank hours and before cut-offs.
Weekends & federal holidays. ACH transactions are posted on business days only. Be wary of posting on Fridays, weekends, and holidays, as transactions are often not processed during these time periods.
Transfer type. Transaction processing speed is dependent on the transfer type; same-day ACH and wire transfers may be faster, but incur more fees than standard ACH transfers.
Verification & compliance. Payments could be delayed if you’re transferring to a new recipient or are initiating large transactions, as banks will often run extra fraud screening, which can delay posting.
Data quality. Typos in account numbers or mismatches in transaction data can cause returns, re-processing, or canceled transactions.

If you need predictability for routine vendor payments and payroll, plan for 1–3 business days with standard ACH. When you’re short on time, same-day ACH, real-time payments, or a wire transfer can let you send money quickly, but for a higher cost. All options are available with Slash, including real-time payments and $0 same-day ACH transfers for Pro users.

How much do ACH transfers cost?

ACH transfer costs may vary depending on your bank or provider, the speed with which you hope your payment will be processed, and other factors and fees. Here’s an overview of common costs:

Per-transaction fees: Fees added per transaction, typically a standard price set by your provider, but some providers may add additional fees for returns or higher-risk transfers (e.g., large volumes, international).
Same-day fees: Same-day ACH usually carries a cost for faster processing.
Corporate pricing: Businesses can negotiate rates for high-volume ACH processing (e.g., heavy direct deposit or bill payments).

By comparison, wire transfers carry higher processing fees , reflecting individual processing and, for cross-border, foreign exchange and intermediary bank fees. Slash offers fair pricing for ACH transactions, wire and real-time payments:

Slash pricing: ACH transfers are free for all users. Same-day ACH costs $1 for free plan users and $0 for Pro plan users. (Wire pricing: domestic $0-$6; international $25. Outgoing RTP pricing: $0-$6.)

5 Benefits of ACH for businesses

Cost-effective vs. checks or wires. Skip paper checks (printing, postage, manual handling) and use electronic payments. For domestic payments, ACH offers a low-cost payment processing option.
Built for recurring payments. ACH debits are ideal for subscriptions, invoices, utilities, and insurance, with permissioned pulls reducing missed payments and helping you send money on a predictable cadence.
Simpler reconciliation. Predictable posting and structured remittance data reduce the need for manual matching. With Slash, ACH entries sync to your accounting ledger automatically.
Secure and governed. NACHA rules, standardized regulations, and bank-level controls make ACH a secure option for business payments.
Cash-flow friendly. Schedule payments, link directly to your bank, and monitor spending through your Slash account, making cash-flow oversight easy and accessible.

How Slash makes ACH (and more) faster and smarter

Slash brings all your cash flow and payment transfer options, ACH credits, ACH debits, same-day ACH, wire transfers (domestic & international), corporate cards, and real-time payments, into one dashboard:

ACH direct deposits, RTP, wire transfers all accessible in one dashboard.
Automated tools for faster approvals and categorization.
Multi-entity support to separate or consolidate expense tracking across different brands or divisions.
Analytics offering real-time insights into your spending and income history.
Accounting integrations for easy reconciliation and audit-ready expense reporting.

With Slash, you can access myriad payment transfer options and gain precise control over your cash flow and funds movements with fewer logins, fewer errors, and fewer headaches with Slash’s all-in-one dashboard.

Frequently Asked Questions

How do I speed up ACH transfers?

Use same-day ACH when available, submit before your bank’s cut-off, and confirm correct ticket information (e.g., account numbers, amount) to avoid returns. For more urgent or time-sensitive payments, choose real-time payments or a wire transfer, both available through your Slash account.

Can ACH transfers be reversed or canceled?

Sometimes. Under certain conditions defined by NACHA rules (e.g., wrong amount, wrong account, duplicate entries, insufficient funds). If you spot an error, contact your bank or platform immediately.

Can international businesses use ACH transfers?

Yes, international businesses can use international ACH transfers (IAT), though these options are typically more expensive than standard domestic ACH payments.