ACH Delay

An ACH (automated clearing house) delay refers to the period of time that an electronic funds transfer (EFT) is delayed, above and beyond the normal time that an electronic funds transfer requires.

For example:
If a merchant account has a 4-day ACH delay, it will take 5 to 7 days for funds to be transferred from the acquiring bank to the merchant’s account, instead of the normal period of 1-2 business days. An ACH delay is a processor’s most often used, and most lenient safe-guard when underwriting merchant accounts that are considered to be higher risk.

An ACH delay may not be as bad as it sounds. Click here for a page about ACH delays and their possible affects on your business.

There is also a wealth of information about ACH delays available in the Merchant Account Guides and tutorials section of the Merchant Council.