How long does the ACH Payment Processing Time Take?

Author : Hometown Merchant Services | Published On : 22 Apr 2021

ACH stands for the automated clearing house, an electronic system that let the consumers and the businesses to perform the bank to bank transaction to send and receive the funds. ACH processor act as the virtual terminal that the businesses can use to accept the payments through their computer, tablet or smartphone for an anytime, anywhere payment gateway. An ACH payment processing time transaction can be either a “push” or a “pull”.

Ø An ACH push occurs when the funds transfer is initiated by the account holder. In this funds are pushed by the account holder from their bank account to the business bank or the payment processing system. ACH push transactions can also be referred to as the ACH credit transactions.

Ø An ACH pull occurs when the funds transfer is initiated by the person or business receiving the funds. Automatic billing for the monthly deliveries or subscriptions transaction is the best examples of the ACH pull. As on every month on a specified date, the payment processing system automatically pulls the funds from the customer account using an ACH pull transaction. ACH pull transactions can also be referred to as the ACH debit transactions.

How long does the ACH Payment Processing Take?

ACH payment processing time for the regular transaction varies from 3 to 5 banking days. ACH payment processing time will depends on the following factors such as –

Ø Amount of transferred money

Ø Payment details

Ø Cut off time which may vary from bank to bank

Ø Every ACH payment processing time consists of the following steps and timeframes such as –

Ø The originator can sends an ACH payment processing file to their bank. The bank receives the request and forwards it to the ACH platform. (Day 1 of an ACH payment processing transaction procedure).

Ø The client’s bank receives the ACH payment request and debits their bank account. The money is credited to the originator’s bank account. (Day 2 of an ACH payment processing transaction procedure).

Ø The client’s bank now informs the ACH platform on payment issues, if any. (Day 3 of an ACH payment processing transaction procedure).

Ø If there is no issue with the payment processing, then the ACH platform will notifies the originator’s bank, which then contacts the originator regarding the payment. (Day 4 of an ACH payment processing transaction procedure).

So in order to make these technique work in your travel merchant account, you can even contact us by visiting our website i.e. https://hometownmerchantservices.com or can follow the above technique to improve your business and to create an enjoyable experience that people will come back to.