ACH processing
ACH payment processing built into your software platform
BrainMerchant processes ACH bank payments for software platforms, so your customers can collect from US bank accounts inside your software, with card payments from the same provider.
Acme BuildersInvoice #7730
Amount due$12,500.00
- Pay by bankACH from a business checking account
- Pay by cardCredit card
Pay $12,500.00
Card and ACH payments processed by BrainMerchant
Debits and credits
ACH debits, ACH credits and who is paying
An ACH payment moves money in one of two directions, and the rules that apply depend on whether the account belongs to a person or a business.
ACH debits
A debit pulls money from the payer’s bank account into the account of the business collecting it. It suits rent, invoices, tuition and donations. Debits authorized online or by phone are often called eChecks.
ACH credits
A credit pushes money from the sender into the receiver’s account. Payroll direct deposit and payments to vendors are common examples. If your flows include payouts, tell us.
Consumer payments
Payments to or from a person’s account use consumer Standard Entry Class (SEC) codes: PPD for standing arrangements such as recurring bill pay, WEB for debits authorized online and TEL for debits authorized by phone.
Business payments
Payments to or from a business account use CCD or CTX. CTX can carry up to 9,999 addenda records of remittance data.
Settlement
How an ACH payment settles
ACH moves money in batches, never instantly. Five parties handle every payment:
- Originator, the business or person that starts the payment, such as your customer collecting an invoice.
- ODFI, the Originator’s bank, which sends the entries.
- ACH Operator, FedACH or The Clearing House’s EPN, which passes entries along and settles between banks.
- RDFI, the Receiver’s bank, which posts the entry to the account.
- Receiver, the person or business whose account is debited or credited, and who must have authorized it.
Timing between banks under Nacha rules, as of October 2026:
- Debits settle the next banking day, or the same day when sent as Same Day ACH.
- Credits settle in up to two banking days, depending on the date they carry.
- Returns mostly arrive within two banking days, or up to 60 calendar days after settlement for a consumer debit reported as unauthorized.
When your customers receive funds depends on their provider’s funding schedule.
ACH paymentACH Network
- AuthorizeThe customer authorizes the debit
- OriginateThe entry is sent in a batch
- SettleFunds move between banks
- Return windowMost returns arrive within two banking days
Same Day ACH is a network option
Same Day ACH is a network option with three FedACH windows and a $1 million per-payment cap ($10 million from September 17, 2027). A provider’s cutoff is earlier than the Operator deadline. Tell us which timing your payment flows need.
Running ACH
What it takes to run ACH well on your platform
As of October 2026, these Nacha and federal rules shape ACH payment processing for SaaS and other software platforms. Confirm the details with your provider or the rule source.
- Get authorization in the form the rules require. Recurring consumer debits need a written authorization, signed or similarly authenticated, with a copy for the consumer. See ACH authorization requirements.
- Validate accounts for WEB debits. Check the account the first time a WEB debit uses it, and again whenever the account number changes.
- Watch your return rates. Unauthorized returns above 0.5% of debits cross Nacha’s threshold. Administrative returns above 3% or overall debit returns (excluding RCK) above 15% of debits trigger an inquiry.
- Know what returns cost. The ODFI pays an Unauthorized Entry Fee on each unauthorized return and usually passes it on to the Originator or platform. See ACH processing fees.
- Retry only insufficient or uncollected funds returns. An R01 or R09 debit may be retried at most twice within 180 days of the original settlement, with RETRY PYMT as the Company Entry Description. See ACH return codes.
- Use the right Company Entry Description. Since March 20, 2026, PPD payroll credits use PAYROLL, and consumer WEB debits for online purchases of tangible goods use PURCHASE.
- Make stored account numbers unreadable. Required for non-consumer Originators, Third-Party Service Providers and Third-Party Senders above 2 million ACH entries a year.
- Keep risk-based fraud monitoring. Watch for entries suspected of being unauthorized or authorized under False Pretenses, and review the process at least once a year.
Is your platform a Third-Party Sender?
Under Nacha rules, your platform’s role depends on whose name is on the bank agreement:
- Third-Party Sender, if your platform holds the ODFI agreement and sends entries for its customers.
- Third-Party Service Provider, if your customers hold the bank agreement.
- Nested Third-Party Sender, if your platform sends entries through another Third-Party Sender and has no ODFI agreement of its own.
A Third-Party Sender carries its own audit, risk-assessment and data-security duties, and since June 2026 the Nacha fraud monitoring rules cover Third-Party Senders and Third-Party Service Providers of any volume. Tell us how your platform moves money and we’ll walk you through it.
Industries
Where ACH fits by industry
Bank payments suit bills that are large or that repeat on a schedule.
Property management
Monthly rent and security deposits from tenants.
B2B invoicing
Large invoices paid from one business account to another.
Healthcare
Patient balances and payment plans.
Nonprofits
One-time and monthly gifts from donors.
Education
Tuition and fees from families.
Field services
Larger jobs and recurring service plans.
FAQ
Questions about ACH processing for software platforms
Short answers to common ACH questions, each with a link to the guide or glossary entry that covers it in depth.
How long do our customers wait for an ACH debit to settle?
Under Nacha rules an ACH debit settles between banks the next banking day, or the same day if it is sent as Same Day ACH. Credits can be dated up to two banking days out. When your customers receive the funds depends on their provider’s funding schedule, and returns can still arrive afterward. We don’t publish timing here; tell us what your flows need.
Our guide to how ACH payments work walks through each step.
Is ACH instant?
No. ACH sends payments in batches, and Same Day ACH is still batched: entries go out in set processing windows during the day. Same Day ACH is also not the same as RTP or FedNow, which are separate instant payment networks. See the Same Day ACH windows and limits.
Can a payer pull back an ACH debit?
Yes, through their bank, as a return under Nacha rules rather than a chargeback. As of October 2026, a consumer can return a debit they say was unauthorized for 60 calendar days after settlement. Most other returns, including a business account holder’s unauthorized claim, come back within two banking days. Compare the two systems in chargebacks vs ACH returns.
Is an eCheck the same as an ACH payment?
Usually, yes. eCheck is a common name for an ACH debit authorized online or by phone, which follows the WEB or TEL rules, so eCheck processing is ACH debit processing under another name. The payment runs on the ACH Network like any other debit. See eCheck in the payments glossary.
Which SEC code fits our payments?
It depends on who pays and how they authorize. Consumer payments use PPD, WEB or TEL, and business payments use CCD or CTX. Ask us which codes your flows need, and read ACH authorization requirements by SEC code before you design your payment screens.
Talk to BrainMerchant
Bring ACH bank payments into your platform
Card and ACH payments through one payment gateway. Tell us how your customers collect bank payments today, and we’ll walk you through what adding ACH involves.