ACH Transfer Settlement Timing

This guide explains how settlement timing works for ACH transfers initiated through the Jiko Partner API, including the distinction between federal settlement and the point at which funds become usable.

"Same day settlement" refers to settlement at the federal level: a transfer is settled by the ACH network on the same day it is submitted to the network. It does not mean that a transfer is requested, submitted to the network, settled federally, and made available to the recipient all on the same calendar day.

Two delays surround the federal settlement event. The pre-transit delay is the time between when a transfer is requested and when it is submitted to the ACH network. The post-transit delay is the time between submission to the network and the point at which Jiko marks the transfer as internally settled.

Three factors determine when a requested transfer is submitted to the ACH network.

The ACH network only accepts transfers during a limited number of processing windows each day. No windows run on weekends or federal bank holidays, so a transfer requested outside an open window is held until the next available one.

Every outbound ACH transfer is reviewed for risk before being submitted to the network.

Outbound withdrawals are liquidated at T+1: funds become available, and the transfer is submitted to the ACH network, on the next business day after the request. Liquidation does not run over weekends or bank holidays.

After a transfer has been submitted to the ACH network, Jiko waits two business days before marking it as internally settled. This delay exists because ACH transfers carry a meaningful risk of being returned within the first two days after submission. Waiting until that risk window has substantially closed lets Jiko settle transfers with reasonable confidence that they will not be reversed.

The practical effect of this delay differs by transfer type.

For withdrawals, the post-transit delay is purely an internal accounting marker. The recipient's external bank receives the funds on the federal settlement date, and availability at that bank is governed by its own posting rules.

For deposits, the customer does not gain access to the funds until Jiko marks the transfer as internally settled — two business days after the transfer is sent to the ACH network.