What is Same-Day ACH?
The expedited ACH processing option that enables same-business-day settlement of electronic bank-to-bank transfers, delivering funds within hours instead of days.
Quick Definition
Same-Day ACH is an expedited ACH processing option introduced in 2016 that allows ACH credit and debit transactions to be processed and settled on the same business day. Governed by NACHA, it provides a faster, lower-cost alternative to wire transfers for time-sensitive domestic payments.
- Settles within hours (vs. 1-3 days for standard ACH)
- $1 million per-transaction limit
- 80-90% cheaper than wire transfers
Understanding Same-Day ACH
Same-Day ACH revolutionized electronic payments when NACHA introduced it in September 2016. Before this, all ACH transactions took 1-3 business days to settle, forcing businesses to use expensive wire transfers for urgent payments.
With Same-Day ACH, businesses can now send and receive funds on the same business day at a fraction of the cost of wire transfers. This has become increasingly important for just-in-time payments, emergency vendor payments, same-day payroll corrections, and time-sensitive B2B transactions.
Same-Day ACH operates through three daily processing windows, giving businesses multiple opportunities to submit time-sensitive payments throughout the day. The service is available for both ACH credits (pushing money) and ACH debits (pulling money).
Same-Day ACH Processing Windows
Window 1
Submit by 10:30 AM ETMorning submissions for early afternoon settlement
Settlement: By 1:00 PM ET
Window 2
Submit by 2:45 PM ETAfternoon submissions for end-of-day settlement
Settlement: By 5:00 PM ET
Window 3
Submit by 4:45 PM ETLate afternoon window for extended processing
Settlement: By 6:00 PM ET
Note: Your bank may have earlier internal deadlines. Always confirm submission cutoffs with your financial institution.
Same-Day ACH vs Standard ACH vs Wire Transfer
Same-Day ACH
- +Same-day settlement
- +$1-10 per transaction
- +Up to $1M per transaction
- -Must meet cutoff times
- -US domestic only
Best for: Urgent domestic payments under $1M
Standard ACH
- +Lowest cost (free to $1)
- +No transaction limit
- +Flexible submission times
- -1-3 business days
- -US domestic only
Best for: Routine payments, high volume, payroll
Wire Transfer
- +Real-time settlement
- +No amount limits
- +International capable
- -$15-50+ per transfer
- -Generally irreversible
Best for: International, over $1M, real-time needs
Why Same-Day ACH Matters for AP Teams
Same-Day ACH transactions in 2023
Value transferred via Same-Day ACH
Cost savings vs wire transfers
Same-Day ACH has grown exponentially since its introduction, becoming an essential tool for AP teams managing time-sensitive vendor payments, emergency disbursements, and same-day payroll corrections without the cost of wire transfers.
When to Use Same-Day ACH
Emergency Vendor Payments
Pay suppliers same-day to avoid stockouts, meet contractual obligations, or resolve urgent situations without wire transfer fees.
Same-Day Payroll Corrections
Fix payroll errors and issue corrections on the same business day to avoid employee hardship.
Just-in-Time B2B Payments
Optimize cash flow by paying vendors at the last moment while still meeting payment terms.
Account Funding
Transfer funds between accounts same-day for cash positioning or to cover unexpected needs.
Tax Payments
Submit tax payments to meet deadlines when standard ACH timing would cause late penalties.
Same-Day ACH Limit History
| Year | Per-Transaction Limit | Change |
|---|---|---|
| 2016 | $25,000 | Initial launch (credits only) |
| 2017 | $25,000 | Debits added |
| 2020 | $100,000 | 4x increase |
| 2022 | $1,000,000 | 10x increase (current) |
Important Considerations
- !Bank deadlines vary — Your bank's cutoff may be 30-60 minutes before NACHA windows
- !Weekend/holiday limitations — Same-Day ACH only operates on Federal Reserve business days
- !Return risk remains — Same-day doesn't eliminate ACH return risk for insufficient funds
- !International ineligible — IAT (international) transactions cannot use same-day processing
Related Terms
ACH Payment
Electronic bank-to-bank transfers through the ACH network
ACH Transfer
Moving funds electronically between bank accounts via ACH
Wire Transfer
Real-time individual bank transfers for urgent payments
Virtual Card
Digital payment cards for secure B2B transactions
Check Payment
Traditional paper-based payment method for vendors
Payment Terms
Conditions defining when and how payments are due