ACH

Checkbook leverages the Automated Clearing House (ACH) network to facilitate electronic funds transfers between bank accounts. The ACH network is a nationwide electronic funds transfer system governed by Nacha (formerly the National Automated Clearing House Association). It provides a way for banks, credit unions, and other financial institutions to move money electronically between accounts in the United States by “pushing” funds to recipients and “pulling” funds from senders. ACH is commonly used for:

Direct Deposit: Payroll payments from employers to employees

Direct Payments: Consumer bill payments (e.g., utilities, insurance)

Business-to-Business (B2B) Payments: Invoices and vendor payments

Types

The ACH network offers two options for electronic fund transfers: standard (or next-day) ACH and same-day ACH. Standard ACH provides settlement occurring within 1-3 business days, which is suitable for routine payments. In contrast, same-day ACH offers an accelerated option, allowing eligible transactions submitted within specific cutoff times to settle and become available to recipients on the same business day. While standard ACH is the more common and often less expensive option, same-day ACH provides a faster alternative for time-sensitive payments.

Standard

Transactions processed via standard ACH, follow a batch processing model, and are submitted to the ACH network at regular intervals throughout the business day. The settlement timeframe for standard ACH transactions typically falls within 1-3 business days from the initiation date. This duration accounts for the batch processing by originating and receiving financial institutions, as well as the ACH network’s operational schedule.

Timing

Limits

The limit for a standard ACH transaction through the ACH network is $99,999,999.99. While this is the rail-level maximum, Checkbook limits still apply.

Same-Day

Same-day ACH is offered for users who require faster electronic fund transfers than the standard ACH processing times. This expedited option allows for eligible transactions to be processed and settled on the same business day they are initiated, providing quicker access to funds for recipients. To achieve same-day settlement, payments must be initiated and submitted to the ACH network before the designated cutoff windows.

Timing

Limits

Nacha sets a per-transaction dollar limit for same-day ACH payments at $1,000,000 per transaction. While this is the rail-level maximum, Checkbook limits still apply.

Details

When an ACH transaction arrives at your bank, it will appear on the bank statement as an electronic deposit/withdrawal.

The specific formatting and information displayed can vary slightly depending on your bank, but you’ll generally see some combination of the following:

Amount: The amount of the payment will be clearly displayed.

Company Information: This field will usually indicate the source of the funds. Instead of a personal name, it will often show the name of the company or entity that initiated the payment. For example, if Checkbook was used by “Dunder Mifflin” to pay you, you might see “ACH CREDIT DUNDER MIFFLIN”.

Date: The date of the funds transfer.

Remittance Information: If the sender included a description with the ACH payment, this might appear in a separate “Memo,” “Reference,” or “Additional Information” field on your statement. The visibility and length of this information can vary between banks.