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Payments
8 min

Same Day ACH & More Ways to Pay Fast

Don’t let late payments harm your reputation and derail your credit score. Learn how Same Day ACH works, and explore even more ways to pay fast.

Gilad Idisis
Published at
A man wearing glasses and a striped apron stands in a bicycle repair shop, looking down at a smartphone in his hands. He appears focused and calm, possibly checking orders or managing payments. The workshop is filled with tools, bike parts, and several bicycles in the background, giving a warm, industrious atmosphere with sunlight streaming through large windows.

Decided to learn about same day ACH because you’re tired of paying your vendors late? You’re not alone.

There are multiple ways to provide fast payments, including same day ACH payments and wire transfers. There’s even a secret hack almost no one talks about – paying with your business credit card even to vendors who don’t accept credit cards. Let’s dive in.

Why do late payments happen?

Late payments happen for a variety of reasons, including…

  • You’re only human, you’re running a business, and juggling a million things at once
  • Cash flow challenges, because of the economy, lack of marketing or maybe your own clients are late to pay, too
  • You pay via check, and it sometimes gets lost in the mail
  • Disorganized work culture

… but what matters is that you’re willing to make a change.

And that making this change is likely easier than you imagine.

What is same day ACH?

Once upon a time, ACH payments were only made within a few days of initiating the process. And they were done once a day at bulk.

What is an ACH? ACH stands for Automated Clearing House, and it’s a method of moving money electronically between bank accounts. Sometimes, it’s also referred to as ACH EFT.

Now, you can transfer money from one account to another via ACH multiple times during a business day, allowing your recipient to get paid the same day. Same day ACH is available for payments up to $1,000,000.

What are the benefits of same day ACH?

We love same day ACH because it helps companies…

  • Easily pay on time even if they’ve been running behind on operations
  • Pay a deposit to secure a service
  • Buy a product at a discount price
  • Provide bonuses or other necessary out-of-cycle payments for outstanding and/or temporary work
  • Make an emergency payment, such as buying new machinery or getting plumbing work done to ensure business continuity

 

Meanwhile, you enjoy the usual ACH benefits, such as…

  • Lower transaction fees than other payment methods
  • Greater security, as no credit card information gets stolen and no check gets lost in the mail
  • Relationship nurturing with vendors and employees, while protecting your brand reputationA graphic titled “Why use same-day ACH?” featuring three cartoon illustrations: A character holding a yellow warning triangle with the caption “Fast pay for hourly, temp, or emergency payroll.” A character holding stacks of coins with the caption “Urgent refunds, payouts, or reimbursements.” A character holding an hourglass with the caption “Last-minute or overdue bill payments.” The phrase "same-day ACH" is highlighted in purple to emphasize speed and urgency.

How do same day ACH transactions work?

ACH bank transfers are a popular way to make business-to-business (B2B) payments, but how long does an ACH transfer take? A standard ACH transfer can take up to three business days to process because it moves through the ACH network.

Three business days aren’t too bad, sure, but sometimes you need a faster option. Therefore, Nacha, the organization that regulates the network, also offers same day ACH transfers. Here’s how it works:

The 3 step process for same day ACH transactions

  • Request your provider (bank, credit union or private provider) to transfer money to your recipient’s account during the allocated time. Check the daily cut off hour with your specific provider, and emphasize you want a same day transfer.
  • The provider transfers the funds through the ACH network three times a day. It used to be only once, but now there are more options, which enable same day ACH transactions.
  • Your recipient gets the money that same day.

How much does same day ACH cost?

The price and availability of expedited transfers depend on your ACH service provider. Most banks don’t advertise their ACH fees, but it can be around $10-30 per transfer. As a point of reference, Bank of America charges small businesses $30 for same day ACH and $5 for next day ACH.

Some banks offer accounts with same day or next day ACH transfers included.

Find the best terms and fees for same day ACH payments

Eligible Melio users can expedite their ACH payments by choosing same day delivery. Fast payments made after 2 PM Eastern will be delivered the next day. Sending a standard ACH transfer via Melio won’t cost you anything, but there’s a 1% fee for same day ACH (up to a limit of $30 per transaction). 

Melio is considered one of the best ACH payment processing options for small businesses, offering transparent pricing and same-day ACH delivery for eligible users.

But check your options. You can compare the terms and fees of the different ACH service providers right here to find the best solution for your specific situation.

Other ways to pay fast

Same day ACH payments are wonderful, but aren’t the only way to pay fast. Keep the following options in your toolbox too.

Pay your vendor with a credit card (even if they don’t accept credit cards)

It sounds crazy, but it’s real – and simple to do. Services like Melio allow you to pay your business bills with a credit card, while your vendor still gets paid by an ACH transfer.

True story: If you use your credit card with Melio by 2 PM Eastern on a business day, your vendor gets paid the same day by an ACH bank transfer. The fee for this service is 2.9% of the transaction.

Benefits to paying your business bills with a credit cards:

  • Pay faster than you would with bank transfers.
  • Defer payments and hold onto money longer. Paying with a credit card lets you enjoy the extra 45-day float until the next billing cycle, giving you more breathing room.
  • Earn rewards. You can collect cash back, points, miles, and rewards with each payment.

Wire Transfers

Wire transfers are another popular payment method, but which is faster—ACH or wire transfer? Wire transfers are faster than standard ACH, as the money moves directly between two financial institutions (point-to-point) rather than going through an ACH system. When you send a wire transfer, it’s usually processed the same day.

That said, wire transfers are substantially more expensive than standard and next day ACH. Pricing for outgoing domestic wire transfers ranges from $20-$30 and can even go up to $50 for international transfers. Most banks also charge for incoming wire transfers.

How to get paid fast

Sometimes you’re the payer, sometimes you’re the vendor. If you want your business clients to pay you faster, make it easy for them. Melio lets your business customers pay you online by ACH for free, without having to sign up.

Here’s how it works:

  • You send them a payment request with an attached invoice and a built-in pay button.
  • All they have to do is click the button and schedule the payment.

Fast payments – a great solution, but here’s a better one

Fast payments are important to have in your arsenal when the occasional late payment ensues or when you urgently need to expedite a shipment of supplies. But fast payments often cost more and might challenge your cash flow, so depending on them entirely isn’t ideal.

Instead, gain control over your finances by planning your payments. You don’t have to do it manually. An effective online bill pay software can help you schedule payments ahead of time, track all your vendor bills, stay on top of all unpaid invoices easily, pay all invoices in minutes, and so much more – at a fraction of the cost.

To turn this into reality, try Melio’s bill pay service. We’ll help you take your bill paying game to the next level.

*Subject to card network limitations

FAQs about same day ACH

What’s the difference between standard ACH and same day ACH?

There are two main differences:

  • Payment time: Standard ACH usually takes a few days. Same day ACH means your recipient gets paid the same day you transfer the payment.
  • Cost: Standard ACH usually costs a few cents to $6, depending on the size of the deal. Some services, like Melio, provide it completely for free. Same day ACH may cost up to $30.

What are the risks of same day ACH?

Are ACH payments safe? Is ACH safer than wire transfers? While there are many benefits to using same day ACH, you should take the risks into consideration as well when planning your financial operations.

  • Fraud. That’s the main concern for most businesses. Standard ACH allows for a few days to catch any malicious attempts, but same day ACH requires everyone to be on guard much more.
  • Cash flow. Some businesses have longer payment cycles to protect their cash flow. It takes time for their customers to transfer them money, so they take time transferring money, too. Using same day ACH on a regular basis might leave them with too little money in their bank account to operate smoothly.
  • Nonproductive operations. If same day ACH is regularly used to “put out fires” of inefficient operations that lead to late payments, it can actually make it worse. Not only does it cost more than standard ACH, but it keeps companies stuck in processes that obviously don’t work.

Are ACH funds available immediately?

Unfortunately not. Standard ACH payments take several days to process. That’s done in bulk once a day. Same day ACH payments are faster, as they’re processed three times a day by providers, but may still take hours to be transferred to your recipient.

Is there instant ACH?

ACH isn’t available for instant payments yet. The closest option is same day ACH, which usually transfers the payment within hours.

What’s the difference between ACH debit vs ACH credit?

ACH credit is initiated by the sender to deposit funds into another account, while ACH debit is initiated by the receiver to pull funds from the sender’s account.

Learn about ACH debit vs ACH credit here. 

*This blog post is intended for informational purposes only and is not intended as financial advice.
**Melio does not provide legal, tax or accounting advice, and you should consult with a professional advisor before making any financial decisions.

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