How long does an ACH payout take?

You might have just sold your crypto using MoonPay and are now waiting for an ACH payout.


What is an ACH payout?

An ACH payout is a deposit that, simply put, transfers funds from our bank account to yours using the automated clearing house (ACH) network. The ACH network, an electronic intermediary connecting financial institutions, plays a pivotal role in orchestrating and managing ACH transfers.

Common instances of ACH deposits include payroll direct deposits, tax refunds, government disbursements, and interest payments.

 

How does it work?

Initially, a payment processor collects fees from MoonPay, followed by the transmission of payment data to the originating bank. This bank then forwards the ACH data to the Federal Reserve, which processes the information and sends the ACH transaction to the your bank.

 

Why do they take so long?

ACH payments can take 3 - 5 business days to process because of the involvement of various parties in the process. If it’s taking longer than 5 days, you might want to reach out to your bank to see if they’re having any issues.

This relatively slow process serves as a risk management safety measure for banks, as ACH payments can encounter rejections at any stage of this intricate process.

 

So what are the steps?

  1. We receive your crypto and sell it, making a payout order for you.
  2. Exchange of banking information.
  3. Initiation of the payment.
  4. Batching of payments.
  5. Sorting of payments.
  6. Processing of payments.

It’s important to note that ACH payments are not conducted in real-time but are processed in batches. Each batch must meet a predetermined deadline to be included in a specific processing cycle. These batch processing windows ensure that transactions are cleared through the Federal Reserve before being dispatched to the customer's bank.

 

Are there any alternatives?

Until the banking system is updated to speed up ACH processing, there are few alternatives. You may wish to try deposits direct to your card. If you are using a VISA Fast Funds card, you will receive the payout within 30 minutes. For standard VISA cards, funds may take up to 48 hours to be made available

 

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