One of the most important and frequent questions that merchants ask regarding their ACH transactions is simply “when do I get my money?”  The best way to keep on top of your finances is to understand how your own “funding cycle” works, so that when you have completed an ACH transaction you will already know exactly when that money will show up in your bank account.  To understand your funding cycle, first consider these three factors.

  1. Business days:  The first factor to understanding where your money is and when you will see it in your account is that an ACH day is a “business day.”  As you perfect your understanding of your funding cycle, always keep in mind that business days are Monday through Friday; excluding several holidays (see the list of holidays below).  It may seem obvious, but knowing which days will “count” in your funding cycle may be the most important tool you will have of keeping track.
  1. Your Funding Time:  Your ACH Funding Time will be provided to you after your VeriCheck application is approved.  Not all businesses have the same funding times, most have 3-day funding times, but there are many businesses that have 5-day, 10-day, even 30-day funding times.  Knowing your own ACH funding time is critical to knowing just when that money will be in your account.For example:If a merchant has a 3-day funding time and enters a transaction on a Monday (the Initiation Day), it will on Tuesday (Effective day) and Wednesday (this is the Funding time), settled on the third day, or Thursday (this is the Settlement day), and post to his bank account on Friday (the Posting Day).The VeriCheck system has the ability to track the status of any payment for each day and can provide any information on . All transactions entered on the same day will be processed and deposited together, any transaction after the batch closing time at 6pm EST will be included with the next day’s batch for deposits.
  1. Your ACH Batch cut-off time: What’s the difference between a transaction that has been entered into your ACH batch at 5:59 pm and 6:01pm?  A whole business day!  All transactions entered on the same day will be processed and deposited together at the batch closing time 6pm EST.   Any transactions after that time will be processed the following business day at 6pm.  So, a transaction made on Monday at 6:01pm will be processed Tuesday at 6pm.

Once you have these factors in your mind, you can answer the question “When will I get my money?” with precision by keeping track of what stage of the funding cycle you are in.

Stage 1.  Creation Date

Creation is the day that the transaction is entered into an ACH batch.  If it is entered before 6pm EST then you know that it will become effective the following business day.

Stage 2. Initiation Day

The day the transaction is entered into an ACH batch by the merchant.

Stage 3. Effective Date

The date the transaction enters the ACH network, the first day business day after the Initiation Day. However, weekends and bank holidays can delay the Effective Date.

Stage 4. Funding Time

The ACH processing cycle is also known as the “funding time,” referencing to the amount of time it takes a transaction to complete the payment cycle.

The funding time ensures that your business does not receive any deposits for payments that haven’t been verified by the customer’s bank. This is the most efficient process to receive payments for electronic checks.

Stage 5. Settlement Day

The day the deposit is made by your ACH process to your bank account

Stage 6. Posting Day

The date money appears in your bank account and the date VeriCheck updates the status of the transaction to “settled”.

The stages help us understand the funding process and better our prediction on when you will get your money. Remember the 6 stages, and your money will be there in no time.