When it comes to payments, efficiency is critical for small business owners. Paper checks are increasingly a thing of the past and credit card payment isn’t always an option. Thankfully, there’s same-day ACH. It’s often one of the best options for moving money efficiently: whether you’re settling up with vendors, transferring funds between accounts, or paying invoices. 

With ACH, you can send payments digitally, transferring money directly from one bank account to another faster and easier than with other payment methods. Same-day ACH takes that convenience a step further by bringing expedience into the fold. 

Here’s everything you need to know about same-day ACH and how you can use it to simplify your business finances.

What is same-day ACH?

Same-day ACH transfers are expedited ACH transfers which send money between individuals or businesses within a single business day.

Automated Clearing House payments launched in the U.S. in the 1970s, when the ACH network overseen by Nacha was officially established. The ACH network processes financial transactions digitally, so businesses can use direct payments and direct deposits to move money quickly and efficiently between accounts. In the early days, however, there was no “same-day” ACH; standard ACH transfers were only as quick as banks processed them (usually 1-3 days).

It wasn’t until 2016 that same-day ACH became a reality. Under this new mode, ACH transactions could be expedited, with funds moving between accounts same-day. The introduction of this transfer type not only sped up the prospect of business transfers; it also made it easier for businesses to control their cash flow and execute financial transactions without extended lead times. 

The benefits of same-day ACH transfers

Having same-day ACH in your business toolbox can help you avoid a whole host of potential financial hurdles. The efficiency of this payment model unlocks a world of opportunities for quick, easy, secure payments to employees, vendors, partners, and anyone else you owe. 

Here are just a few ways small businesses benefit from using same-day ACH for transfers and payments:

  • Highly secure method of payment: This transfer type has been deemed a safe and secure means of transferring money between bank accounts by a dedicated risk management advisory group at Nacha. In 2022, the transaction limit was increased to $1 million, showcasing exactly how confident they are in the safety of this payment method.
  • Prevent the accrual of late fees: It’s happened to all of us—you think you paid all your bills for the month, then realize one slipped through the cracks or arrived later than anticipated. In most situations, this would result in a late fee. With this transfer type, you have time to avoid or quickly rectify the oversight.
  • Issue an emergency payroll: It’s important that your staff be reliably paid in a timely manner, but sometimes our systems fail and a scheduled payment doesn’t run. With same-day ACH, running an emergency corrective payroll can still get your staff their earned wages on payday.
  • Save money with vendors: In some instances, vendors are willing to charge lower rates to businesses that can pay them on the same day they’re invoiced. While this may not be a huge savings you can expect across the board, knowing that it’s an option makes same-day ACH all the more enticing.

Beyond these benefits, the fundamental advantage that same-day ACH offers business owners is the ability to complete their work at the speed modern businesses require—for most entrepreneurs, waiting days to complete a payment is simply not a feasible option.

The bottom line

Every bank has its own rules regarding how much you’re able to transfer in a single same-day ACH payment or when you need to submit your transfer request. That said, most are able to facilitate this expedited form of payment. So, no matter where you are or what industry you work in, it’s possible to move money quickly and securely, to get it to wherever it’s going.

Remember, efficiency is vital for business success—especially when it comes to financial transactions. Having this transfer type on your side can help erase the worry that comes with rapidly-approaching payment deadlines or last-minute funds transfers to cover unexpected costs. When finances become unpredictable or strained, these transfers give business owners the agility they need to breathe a sigh of relief. 

Plus, you don’t have to worry about the safety of this method of payment or the security of your money as it moves between accounts, since years of data show its reliability. 

Take advantage of same-day ACH

To get started using same-day ACH, contact your financial services provider. You can also learn more about their transfer limits, the cutoff time for these money transfers, and whether there are any additional fees to consider. And if you’re in the market for a business banking provider that offers same-day ACH, apply to North One today.