What Is ACH? (And Why Your US Payments Aren't Instant)

You just finished a project for a US client. They confirm they've sent payment via bank transfer.

You check your Maash app. Nothing.

You message the client: "Are you sure you sent it?"

They send a screenshot showing "Payment processed" from their bank.

But your Maash USD balance still hasn't updated.

What's going on?

If you're used to Sri Lankan bank transfers that arrive within minutes, this can be confusing and stressful. But there's a simple explanation: most US bank transfers use a system called ACH, which is designed to be cheap and reliable, not instant.

This guide explains what ACH is, how it works, why it takes 1 business day, and what to expect when receiving payments to your Maash US virtual bank account.

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What Is ACH?

ACH stands for Automated Clearing House.

It's a national electronic payment network used for domestic, low-value transfers between US bank accounts.

Common Uses

ACH handles:

• Payroll and salary deposits: Most US workers get paid via ACH direct deposit
• Contractor and freelancer payments: Companies paying invoices under $10,000
• Bill payments: Utilities, subscriptions, loan payments
• Transfers between accounts: Moving money between your checking and savings
• Online payment apps: Venmo, PayPal, Cash App all use ACH behind the scenes

Think of ACH as the US equivalent of a batch, low-cost bank transfer system. It's closer to how CEFTS/SLIPS works in Sri Lanka (though those are faster) than to instant real-time transfers.

How ACH Became the Default Rail

ACH isn't new or experimental. It's been the backbone of US payments for over 50 years.

Brief History

Late 1960s - Early 1970s: US banks and the Federal Reserve needed an electronic alternative to paper checks, which were overwhelming the system. Processing billions of physical checks was slow, expensive, and error-prone.

1972: The first ACH system launched at the Federal Reserve Bank of San Francisco, automating payments that previously required physical check processing.

1974: Nacha (National Automated Clearing House Association) was founded to set rules and govern the network. It still runs ACH today.

1990s - 2000s: ACH went nationwide, volumes exploded, and it became the backbone of US payroll and bill payments.

2010s onwards: Same-day ACH was introduced and expanded, but most transfers still settle on same-day or next-day cycles, not instantly.

Scale Today

ACH processes tens of billions of transactions per year and over $80 trillion USD in value, making it the most widely used US electronic bank transfer method.

When your US client pays you, they're almost certainly using ACH.

How an ACH Payment Actually Works

Here's why ACH isn't instant: it's a batch processing system, not a real-time system.

The Four Players

Every ACH payment involves four parties:

1. Originator (Sender)
   The person or company sending money. In your case, this is your US client or the platform paying you (Upwork, Deel, etc.).
2. ODFI (Originating Depository Financial Institution)
   The originator's bank. It collects outgoing ACH payments from many customers throughout the day.
3. ACH Operator
   A central processor (the Federal Reserve or a private operator) that receives batches from many banks, sorts them, and forwards them to the right destination banks.
4. RDFI (Receiving Depository Financial Institution)
   The bank that holds the recipient's account. For Maash, this is our US banking partner (Lead Bank). It credits the final account once funds settle.

The Batch Process

Here's what happens when your client sends you money:

1. Client initiates payment through their online banking or accounting software
2. Their bank batches the payment with thousands of other ACH transactions
3. The batch gets sent to an ACH operator at scheduled times (not continuously)
4. The ACH operator sorts and routes payments to destination banks
5. The destination bank (Maash's partner) receives the batch and credits accounts
6. Your Maash balance updates once the settlement completes

How Long Does ACH Take?

Let's take a closer look to how it works with your Maash US Virtual Bank Account!

Standard ACH

Most US payments sent to your Maash US virtual bank account are next-day ACH credits:

• If your client's bank submits before its cut-off on Monday, you typically see the funds reflected in Maash on Tuesday (US business days)
• Late submissions or Friday transfers may not appear until the next US business day – which is most likely Monday, but it may take until Tuesday depending on what time the bank transfer was made (i.e. whether it is after US banking hours)

Weekends and Holidays

ACH does not settle on weekends or US bank holidays.

A payment initiated Friday afternoon in the US could land on Monday or even Tuesday.

Example timeline:

• Friday 4 PM ET: Client's bank receives payment instruction
• Friday 5 PM ET: Missed the day's ACH batch cut-off
• Saturday/Sunday: No ACH processing
• Monday: Payment processed in morning batch
• Tuesday morning: Your Maash balance updates

Why US Companies Love ACH (And When They Use Wires Instead)

Understanding cost motivations helps explain why nearly all your US clients will default to ACH.

Cost Comparison

ACH transfers are very cheap:

• Banks often charge businesses a few cents to maybe $0.50 per transaction
• Many consumer accounts show ACH transfers as "free"
• For high-volume senders (payroll companies, platforms), costs are negligible

Domestic wires are expensive:

• Typically cost $20-30+ USD to send
• Sometimes also a $10-20 fee to receive (meaning you get less!)
• But they're real-time or near-real-time

The Trade-off for Your Client

For a $500 or $1,000 invoice, your client can either:

• Pay a $20-30 wire fee to get it to you instantly, or
• Use ACH for free or a few cents and have it arrive the next business day

Most choose ACH. The cost savings are too significant to ignore for routine payments.

When Companies Use Wires

Wires are typically reserved for:

• Very time-sensitive payments
• Large-value deals (real estate closings, major business acquisitions)
• Some international payments
• Emergency situations where speed matters more than cost

For regular contractor payments, invoices, and payroll, ACH is the default.

How This Affects Maash

Your Maash US virtual bank account looks like any other US bank account to your client. Their bank sees it as a normal domestic account and by default offers ACH as the cheapest option.

This is good for you because it means:

• Almost any US company can pay you (ACH is universally supported)
• Your client doesn't incur expensive wire fees
• You avoid the "wire transfer surcharge" some freelancers add to invoices

The trade-off is accepting a short delay.

ACH vs Instant Transfers: Expectations for Sri Lankan Users

If you're used to Sri Lankan banking, US ACH will feel slow. Here's why:

Sri Lankan Banking Experience

In Sri Lanka, many users are accustomed to instant or near-instant local transfers between banks:

• CEFTS (Common Electronic Fund Transfer Switch) processes transfers quickly
• Mobile banking apps often show instant balance updates
• QR code payments settle immediately

US Banking Reality

In the US, instant transfers are usually reserved for:

• Zelle or RTP (Real-Time Payments) between participating banks
• Domestic wire transfers (at much higher fees)

ACH chooses low cost and ubiquity over speed.

The Trade-off for Maash Users

You accept a short delay (typically next-day) in exchange for:

• Cheap or free payment for your client (they're more likely to work with you)
• Very high acceptance (almost every US company can pay you this way)
• Reliable settlement into your US virtual account

How ACH Flows Into Your Maash US Virtual Bank Account

Let's walk through exactly what happens when a US client pays you.

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Step-by-Step Process

1. You provide account details
   You give your client your Maash US account number and routing number. These are unique to your Maash account.
2. Client sets you up as a payee
   They add you to their online banking or accounting software (QuickBooks, Bill.com, etc.) and choose "bank transfer" or "ACH."
3. Their bank batches the payment
   When they hit "send," their bank doesn't immediately send money. It batches your payment with others for the next ACH processing window.
4. ACH network processes the batch
   The batch goes through the ACH operator and gets routed to Maash's US banking partner (Lead Bank).
5. Banking partner sends USD to your Maash account
   Once the batch clears, the banking partner pays to your Maash account.
6. Your USD balance updates
   Your Maash app reflects the new balance, usually the next US business day.

Why There's a Delay

Because this relies on ACH cycles, you may see a delay from when your client's online banking shows "sent" until your Maash balance updates.

That gap is the ACH system doing its work behind the scenes, not Maash holding funds.

Your money is in transit through the regulated US banking system, following the same process that handles trillions of dollars in legitimate payments every year.

What to Do If an Expected ACH Hasn't Shown Up Yet

Here's how to troubleshoot before contacting support.

Check Timing and Business Days

When exactly did the client's bank say it was processed?

• Same day? Expect it tomorrow
• Yesterday? Check if there was a US weekend or holiday
• 2+ business days ago? Time to investigate

Were there US weekends or holidays in between?

• ACH doesn't process Saturday/Sunday
• US bank holidays: New Year's Day, MLK Day, Presidents Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving, Christmas

Allow 1-2 Full US Business Days

Before worrying, allow at least 1-2 full US business days from when the payment was initiated.

Most "missing" payments are just in the normal ACH processing window.

If It's Beyond That

Ask the sender for:

• ACH trace number or confirmation
• Screenshot of the transaction details
• Expected amount and date sent

Contact Maash support with:

• The trace number
• Expected amount
• Date the client says they sent it
• Client's name or company

Our team can check with the banking partner to locate the payment.

Reassurance

ACH payments are highly reliable. Delays usually come from:

• Cut-off times (payment submitted after daily batch)
• Weekends or holidays
• Incorrect account details (wrong routing or account number)

Money doesn't just "disappear" in the ACH system. If it was properly initiated, it will arrive.

ACH as the "Everyday Rail" Behind Your US Virtual Account

ACH is the standard, regulated, decades-old way money moves between US bank accounts.

Key takeaways:

• It's designed to be cheap and accessible, not instant. That's why most of your US clients will use it by default.
• Next-day settlement is normal. Expect 1 business day for most payments, but up to 3 days if it's the weekend or US public holidays.
• It's reliable. Over $80 trillion moves through ACH annually with very low error rates.
• It gives you access to the same rails US workers use every day. You're not getting a "second-class" payment system. You're using the primary payment system for the world's largest economy.

Setting Expectations with Clients

When setting up a new US client or platform, you can say:

"Please send payment via ACH bank transfer to my US account. It typically takes 1-2 business days to settle, so if you send it Monday, I'll see it Tuesday or Wednesday. That's normal for US bank transfers."

This sets clear expectations and avoids the "where's my money?" panic.

Bottom Line

Using ACH to your Maash US virtual account gives you:

• Universal acceptance: Any US company can pay you
• Low cost: No expensive wire fees eating into your earnings
• Predictability: Once you understand the timing, you can plan around it

Disclaimer: This article is for general informational and educational purposes only and does not constitute financial, investment, legal, tax, or other professional advice. Maash is a financial technology platform and is not a bank or investment adviser. Product availability and features may vary by country or region and are subject to eligibility checks, partner terms, and applicable laws and regulations.