How long do ACH Bank Transfers take to pay out?
ACH Bank Transfers will follow a fixed processing time for the payment to be completed. Once the transfer of funds have been completed from the client to the payment processor, the payment is then scheduled as per your current payout schedule.
ACH Bank Transfer processing time: 2-5 business days
ACH Bank Transfer payout time: Dependent on your payout schedule after the payment has been received after processing
If you are on the Standard Payout schedule, from the time that the payment is fully processed, the payment will arrive in 2-4 business days.
Due to the nature of ACH Bank Transfers, these transactions are not eligible for the Instant Payout schedule.
More information about payout schedules on Bonsai Payments can be found here.
Why the long processing time for ACH Bank Transfers?
ACH Bank Transfers are governed by the "Sender's" financial institution. Typically, banks are responsible for the speed of the processing for a number of different factors. Most notably, ACH Bank Transfers are usually batch processed by the financial institution and include numerous steps in the process to minimize fraud and error rates of these transactions.
This is not something the Bonsai has control of, meaning that payments are unable to be expedited as a result.
However, when the payments have been fully processed by the client's financial institution, the payment would then be scheduled for payout as per your payout schedule.
How to determine if my invoice has been paid via ACH Bank Transfer?
ACH Bank Transfers will initially show as "Pending" once the payment has been initiated by the client. For this, you will see an "Orange" dot icon, as shown here:
This means that the payment has been made and is currently in processing from your client's financial institution.
Once the payment has cleared your client's financial institution (Within 2-5 business days), the invoice status will then be changed to "Paid" and the payment will be scheduled on your current payout schedule.
What are the fees associated with ACH Bank Transfers?
All ACH Bank Transfers are subject to a 1% processing fee using Bonsai Payments. With that, there is a 1% minimum processing fee associated with all ACH Bank Transfers.
More information regarding the payment fees using Bonsai Payments, Stripe Payments, & Paypal can be found here.