In this article, we’re answering “How long do ACH transfers take?” This will be relevant for foreigners and US citizens, whether you applied and opened a US bank account from India or your home in the United States.
Not surprisingly, the answer to this question… depends. But below, you’ll find everything you need to know to determine how long it will take for your transfer to arrive. We’ll also look at deposit factors that can influence your transfers, like outstanding checks and pending balances.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- How Long Do ACH Transfers Take?
- What Are ACH Transfers Used For?
- How to Send an ACH Transfer
- Frequently Asked Questions
- Ready to Open Accounts With Banks in the USA?
How Long Do ACH Transfers Take?
How long it can take for an ACH transfer to process depends on your bank and the person sending the transfer. The issuing party can choose whether an ACH transfer is “same day”, “next day”, or “two day”. That said, there is no immediate option for ACH transfers. So, recipients should expect ACH transfers to clear within two business days.
Importantly, ACH transfers are not processed on weekends, holidays, or outside of regular hours. This is because the ACH network requires access to the Federal Reserve Settlement Service in order to be processed. And, the Fed’s settlement service closes during weekends, holidays, and every evening at 6:30 PM Eastern Time.
With this in mind, if you need to make an immediate transfer, you may want to consider alternatives. Faster transfer options include using digital wallets or money service businesses like Venmo, PayPal, and even Wise for international transfers. Alternatively, if you are sending between two accounts outside of the United States, you may have other e-transfer options available to you that offer immediate transfers.
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What Are ACH Transfers Used For?
ACH transfers are used for sending money between accounts at banks and credit unions via the ACH network. These transfers are commonly used for direct payments, routine charges, and batched transfers such as depositing employee salaries.
In this section, we’ll take a closer look at what are ACH payments and who uses them.
What Are ACH Payments?
ACH payments are regular payments that are sent from one party to another. The most common example of an ACH payment is a salary payment from an employer to an employee. However, there are many other types of ACH payments as well, including automatic bill payments and business-to-business payments for services.
Who Uses ACH Transfers?
ACH transfers are used by companies and consumers. Companies use ACH payments to make regular payments of fixed amounts and to pay other companies for services. Additionally, consumers use these payments for direct deposit transfers, paying bills, and direct debit transactions.
How to Send an ACH Transfer
You can send an ACH transfer directly from your online bank account. To do so, you will need to log in to your account and navigate to transfer from the navigation menu. Then you can follow the instructions, insert the recipient’s information, select when you want the transfer to arrive, and schedule the transfer for delivery.
Requirements for Sending an ACH Transfer
The requirements for sending an ACH transfer include:
- Name of the financial institution
- Routing number of the financial institution
- Type of account receiving the funds
- Account number where the funds are being sent
Frequently Asked Questions
Below are three of the most common questions that we receive from people asking “how long do ACH transfers take?”. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.
How Long Does It Take for an ACH Payment to Go Through?
The person initiating an ACH payment can decide if a payment will be delivered “same day”, “next day”, or “two days”. However, ACH payments are only processed during business days, not weekends or holidays. So, the days selected by the sender specifically refer to business days. If you are the recipient of a transfer and you are waiting for it to arrive, you should expect to receive it no later than two days after it has been sent.
Do ACH Transfers Go Through on Weekends?
No, ACH transfers do not go through on weekends. In fact, transfers only go through during business days when the Federal Reserve settlement system is operating. In other words, transfers do not go through at any time when the Federal Reserve system is inaccessible.
What Time of Day Do ACH Transfers Go Through?
ACH transfers go through during four fixed periods throughout the day. That said, transfers can be submitted outside of these regular hours. For your reference, US transfers are settled during the hours when the Federal Reserve settlement system is open, which closes at 6:30 PM Eastern Time.
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