Online banking

Online Banking

How Same-Day ACH Transfers Can Benefit Small Businesses

ACH (or Automated Clearing House) transfers are a secure way to electronically transfer money between accounts in different banks. Last year, more than 24 billion ACH transactions were processed in the United States. In fact, you likely made an ACH transfer without even realizing it. For example, if you pay bills online or your paychecks are directly deposited into your bank account, those are examples of an ACH transfer. 

For business owners, ACH transfers aren’t just beneficial, they are vital to smooth day-to-day operations and money management. ACH transactions are responsible for making and receiving payments for vendors, customers, and staff.

What Makes an ACH Transfer?

An ACH transfer is an electronic payment from one bank to another through the Automated Clearing House Network. Financial institutions use the ACH network to make direct deposits and payments automatically. While many of these payments may happen instantly, some ACH transactions can take hours or even days to fully process. An ACH payment might include direct deposits, such as paychecks or employee expenses, tax refunds, or interest payments from your bank.

The Benefits of Same-Day ACH Payments

Before same-day ACH payments, a business may set up a transaction to be made on a Monday that would not go out until Thursday. Throughout that time period, business needs, emergency funds, or other regular business expenses might arise, causing an uncertain balance, overdraft, or even missed payments. As president and CEO of NACHA Janet Estep states:

“The launch of Same-Day ACH marks a significant milestone in the journey towards faster payments in the U.S. Same-Day ACH provides absolute certainty that your payment can get to absolutely anyone else with a bank account on the same day, regardless of which bank or credit union they use, bringing value to all users of the ACH Network.”

The implementation of same-day ACH transactions began back in 2016 and was fully rolled out in 2018. It is a progressive solution to help businesses move money fast, transfer money to different accounts, or make and receive payments. It gives these businesses a better idea of their working cash flow and cash on hand.

A few of the benefits of ACH payments include:

  • Reduce costs for expedited payments

  • Improve business forecasting

  • Predictable times for payment distribution

  • Decrease fines and late payment penalties

  • Improve working capital and cash flow

At Falcon National Bank, we have the tools to help you run your business. We'll help you choose the checking or savings account that is right for you. Our business accounts also have fast and easy options right at your fingertips. Contact one of our experts to learn more.