How The Holiday’s Affect ACH Payments


It’s that time of year again, the holidays! Did you know certain holidays affect ACH Payments?

Here is a list of U.S. Banking Holidays:

  • New Year’s Day

  • Martin Luther King Day

  • President’s Day

  • Memorial Day

  • Independence Day

  • Labor Day

  • Columbus Day

  • Veteran’s Day

  • Thanksgiving

  • Christmas

These holidays are recognized by the Federal Reserve System. These are the days banks are closed and not operating in their normal function.

This can affect the rate at which your business processes ACH payments.

The Affect of Banking Holiday’s on ACH Payments

When ACH payments are initiated, they will clear in 3-4 business days. Just like if you were initiating a payment on a weekend, if you initiate a payment on a banking holiday the typical clearing times will be delayed, and the payment will initiate on the next business day. Be sure to keep this in mind during the holiday season (Thanksgiving, Christmas, New Year’s Day).

When utilizing ACH payments, it’s key to understand the ACH system and how it works. At Gulf Management Systems, we help businesses process ACH payments conveniently and at a cost-effective rate. Contact us today to see how we can help!