# 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.
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### What is Two-Day Settlement?
When using two-day settlement for ACH, payments will be made on [Same Day ACH](https://www.nacha.org/rules/same-day-ach-moving-payments-faster-phase-3#:~:text=Same%20Day%20ACH%20will%20allow,the%20same%2Dday%20processing%20schedules.) 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.
Be aware of these additional risks. You might have transactions that pay out from your Stripe balance that later fail for common errors such as insufficient funds (NSF).
### Eligibility
US 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 the [Dashboard](https://dashboard.stripe.com/settings/payment_methods).
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](https://www.nacha.org/rules/same-day-ach-moving-payments-faster-phase-3#:~:text=Same%20Day%20ACH%20will%20allow,the%20same%2Dday%20processing%20schedules.) 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 1,000,000 USD submitted before 2:00pm US/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**
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- Standard Settlement
- T+4
- T+4
- 9:00pm US/Eastern
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- Two-Day Settlement
- T+2
- T+3
- 2:00pm US/Eastern
_All times are in business days_