Two-Day Settlement for ACH Direct Debit

Two-Day Settlement is an improvement to the ACH network that allows for faster processing of ACH transactions, with payments typically taking 3-4 business days to be processed and confirmed, compared to 4-5 business days for standard ACH. Eligibility for Two-Day Settlement requires a minimum of 120 days of processing on Stripe.


What is Two-Day Settlement?

When using two-day settlement for ACH, payments will be made on Same Day ACH rails. If a payment fails after funds have been made available in your Stripe balance, Stripe will immediately remove those funds from your Stripe account.

Please be aware of these additional risks. You may have transactions that pay out from your Stripe balance that later fail for common errors such as insufficient funds (NSF).

Eligibility

Businesses in good standing will typically be eligible for two-day settlement after processing on Stripe for a minimum of 120 days.

You can check your eligibility in your Dashboard.

If you have opted into two-day settlement and your account fails to meet eligibility requirements on an ongoing basis, your eligibility may be revoked and your processing will revert back to standard timing.

What is Same Day ACH?

Same Day ACH is an improvement to the ACH network that allows for faster processing of ACH transactions. This does not mean that funds are available and confirmed on the same day. The customer’s bank still has 2 business days to send a return, so payments will take 3-4 business days to be processed and confirmed (compared to 4-5 business days for standard ACH). For ACH Direct Debit transactions with two-day settlement timing, payments under $100,000 submitted before 2:00 pm Eastern Time will be processed on Same Day ACH rails. Payments above this limit or submitted after this cutoff time will be processed the next day.

Settlement Timing

Selection

Settlement Timing

Confirmation Timing

Cutoff Time

Standard Settlement

T+4

T+4

24:00 UTC
(7:00pm EST / 8:00pm EDT)

Two-Day Settlement

T+2

T+3

2:00pm Eastern
(18:00 UTC / 19:00 UTC)

All times are in business days