ACH Guide

Synapse supports ACH debits and ACH credits between bank accounts (in addition to other payment types). You can either send funds directly through two parties OR pass them through an intermediary account (preferred).

Below is the basic information about setting up ACH Payments on our system.

Do I have to redirect customers to Synapse?

No, our API allows you to send payment instructions between bank accounts without redirecting customers to Synapse. You control your user interface. However, we do require certain disclosures and notifications for compliance purposes.

What are the stages of a transaction?

The standard payment flow has the following stages:

  1. CREATED -- Payment instructions are received by our system & are waiting to be submitted to the ACH network.
  2. PROCESSING-DEBIT -- Funds are being debited from an external account into an account on our network. These funds either land in a clearing account to be sent to the fund recipient or they will pass through an account in your platform's name or your customer's name.
  3. PROCESSING-CREDIT -- Funds are being credited from an account on our platform into an external account.
  4. SETTLED -- Funds have settled in the fund recipient's account (Note: There is still a risk for returns or chargebacks)

Additionally, transactions may be queued, canceled or returned. Refer to our API docs for more info: Transaction Status & Transaction Codes

Canceling Transactions:

Platforms can only cancel transactions in the CREATED or QUEUED stage.

Payment Schedule:

Payment instructions are submitted to the ACH network on business days (Mon - Fri). Note that payments are not submitted on weekends or bank holidays.

Cutoff Times:
9AM PT -- For Same Day ACH OR checks (must be enabled)
4PM PT -- For Regular ACH

Settlement Times:
End of Day -- Same Day ACH (must be enabled)
Next Day -- Regular ACH

Transaction Statuses are updated based off this loose schedule:
(1) Same-day ACH (around 9am-ish),
(2) Regular ACH transactions (10am-ish-12pm-ish)
(3) The remainder of transactions before the 4PM cutoff time (6pm-ish)

Returns are updated sometime before 4PM

Please refer to your agreed upon Flow of Funds + CIP for platform-specific settlement times.

Settlement Speeds:

Settlement speed is a function of risk. However, our standard settlement time is 1 day debit, 1 day credit for ACH transactions.

In other words, to send from Bank Account A to Bank Account B, it would take 2 days (1 day to debit Bank Account A, 1 day to credit Bank Account B)

Below is an example of an ACH Debit, including settlement and return windows. ACH Credits follow the same timeline. Please note that this is an example. Actual settlement/return times may vary.

Description Cutoff Time (PT) Status
Platform creates a transaction Day 1, 9:00AM CREATED
Synapse submits ACH Batch to Partner Bank ("ODFI) Day 1,  4:00PM PROCESSING-DEBIT
ODFI forwards ACH request to Fed, who then sends to RDFI Day 2, 12:01AM PROCESSING-CREDIT
RDFI picks up ACH request who then forwards to recipient Day 2, 11:00AM* SETTLED
RDFI sends ACH return to Fed, who then sends to ODFI Day 4, 12:01AM SETTLED
ODFI picks up ACH request, who then forwards to sender Day 4, 3:00PM RETURNED

Please note:
(1) This chart assumes no delays (for late or queued transactions, weekends, holidays, etc) and does not account for Chargebacks.
(2) Our ACH Batch Time is 4PM PT, though transactions after 12PM PT may be submitted in the following day's batch.
(3) Settlement times may vary.

Returns, Chargebacks & Disputes:

Even thought a transaction has settled, there is still a risk for returns or chargebacks

Read more about chargebacks.

Read more about returns.


Have more questions about ACH settlements with Synapse? Email



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