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Overview of ACH Batch Cut-Off and Funding Times with STAX

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Important Terms:

ACH: ACH is an electronic funds transfer (EFT) between two bank accounts using the Automated Clearing House (ACH) network. It's a secure way to transfer money without using paper checks, wire transfers, or cash.
Batch Time: Batch Time is the daily cutoff for grouping transactions to be sent for funding. Transactions before this time are dated for that day, while those after are dated for the next day’s batch.
Funding Time: Funding Time refers to the total duration between processing a transaction and receiving the funds for that transaction.
Deposit: Deposit means receiving funds for a batch of transactions in your bank account.  

ACH Batch Time:

ACH payments batch at 8pm ET. Any ACH payment received after 8pm ET will be processed at 8pm ET on the next business day. Not considering holidays, transactions processed after 8pm ET Friday, or anytime on Saturday and Sunday, will batch at 8pm ET on Monday.  

Standard Business Day ACH Transaction Funding Time: 

To consider the expected funding time for ACH payments, it becomes important to consider the three different components of funding:

  • The day the transaction is performed
  • The number of days the transaction is in funding
  • The settled date of the transaction

This entire process is considered to take 5 business days.

  • The first of the 5 business days is the transaction date. This is the day that the transaction is performed, batched, and begins it's journey through the Automated Clearing House process. 
  • Business days 2, 3, and 4 occur with the transaction being in an in funding status. 
  • The fifth business day is the settlement date of the transaction. 

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Example of ACH Funding Time:

If a payment is processed on a Monday, you as the merchant will receive your deposit on Friday, and follows the example below:

  • Day 1: Initiation Day (Monday) - The day the transaction is performed
  • Day 2: Posted (Tuesday) - In Funding
  • Day 3: Posted (Wednesday) - In Funding
  • Day 4: Posted (Thursday) - In Funding
    • Processor notified by bank if payment will settle or return 
    • Deposits sent out this night
  • Day 5: Settled (Friday) - The Settled Date of the Transaction 
    • Payment Updates to Settled or Returned
    • Deposit appears in merchant’s account if settled

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Funding time calculations can be affected by bank holidays, as no transaction processing takes place on these days. They should be considered in all funding time calculations. 

  • Saturday and Sunday
  • All Bank Holidays
    • New Year’s Day  (January)
    • Martin Luther King Day  (January)
    • Presidents Day  (February)
    • Memorial Day  (May)
    • Juneteenth (June)
    • Independence Day  (July)
    • Labor Day  (September)
    • Columbus Day  (October)
    • Veterans Day  (November)
    • Thanksgiving Day  (November)
    • Christmas Day  (December)

Deposits from ACH funding will appear on your bank statement as "Funding"

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