Same Day ACH Guide

Same Day ACH enhances payment speed by enabling same day settlement for eligible transactions. This service supports credit, debit, and return transactions, ensuring funds are processed within the same day when they meet the required criteria.

In 2016, NACHA launched Same-Day ACH credits, followed by Same Day ACH debits in 2017. Traditional ACH transactions typically take 1-3 business days to process, which may not be ideal for time-sensitive payments.

Unlike standard ACH, which processes payments in batch settlements throughout the week, Same Day ACH allows for multiple clearing and settlement cycles within a single day, improving efficiency and reducing wait times.

How Does Same Day ACH Work?

1. The transaction originator instructs an Originating Depository Financial Institution (ODFI) to initiate a payment.
2. The ODFI requires the originator's US bank account information and the receiver’s bank account information to transmit the payment request.
3. The ODFI sends the transaction instructions via a NACHA file to the ACH Operator.
4. The Operator relays the file to the Receiving Depository Financial Institution (RDFI).
5. The account holder of the RDFI has the funds credited or debited.

Common Same Day ACH Use Cases

In 2023, the Same Day ACH network moved nearly $2.5 trillion, made up of around 850 million individual payments. The most common use cases for Same Day ACH transactions include:

• Payroll - Same Day ACH enables faster payroll processing, allowing businesses to pay employees on the same day, which is particularly beneficial for hourly, temporary, or gig workers. It also supports off-cycle payments such as bonuses, expense reimbursements, and emergency payroll.
• Bill Payments - Same Day ACH debits allow businesses to automate and expedite bill collections, ensuring payments are processed on or after the due date with minimal delay.
• Insurance Payouts - Insurance companies can use Same Day ACH to quickly settle claims, providing faster access to disaster assistance funds, rebates, refunds, and reimbursements.
• Refunds - Businesses can accelerate customer refunds, improving cash flow and enhancing customer satisfaction by reducing waiting times.
• Micro-Verification - Same-Day ACH speeds up bank account verification by enabling same-day processing of micro-deposits, streamlining onboarding and reducing delays in account authentication.

Same Day ACH Transaction Limits

The Same Day ACH network limit is $1 million per transaction. VoPay imposes its own transaction limits on our customers based on their risk profile, account age, and the industry they operate in

Same Day ACH Cut-Off Times

The final cut-off time for Same-Day ACH processing is 6 PM Eastern Standard Time (EST). Same Day ACH payments are processed only on business days. Transaction requests can be submitted at any time and will be processed during the first available processing window.