ACH Processing

Move money bank-to-bank for a fraction of card interchange. KAJA processes ACH credits and debits across the U.S. — same-day available, Nacha-compliant by design, and built for recurring billing, B2B invoicing, payroll, and any high-ticket use case where 2.5%–3.5% card fees don't make sense.

What Is ACH Processing?

The Automated Clearing House (ACH) is the electronic funds-transfer network that moves money between U.S. bank accounts. It's governed by Nacha (the National Automated Clearing House Association) and operated by the Federal Reserve and The Clearing House. When you process an ACH transaction, you're using the same rails that handle payroll direct deposit, Social Security payments, mortgage drafts, and the bulk of U.S. B2B commerce — over $80 trillion in volume a year.

KAJA connects your business to that network. We originate consumer and corporate ACH credits (push payments — payroll, refunds, vendor disbursements) and ACH debits (pull payments — subscriptions, invoices, recurring billing), handle Nacha rule compliance, validate accounts before first use, and price every transaction at a flat rate that's typically 90% lower than card processing.

ACH credit vs. ACH debit: a credit pushes money from your account to a receiver — used for payroll, refunds, and vendor payments. A debit pulls money from a customer's account into yours — used for recurring billing, invoice payment, and subscription dues. KAJA supports both, on the same platform, with the same Nacha-compliant authorization flow.

Built for the Nacha Operating Rules

Nacha-Compliant Authorization

Every transaction is authorized the way Nacha requires for its SEC code — written and signed for recurring consumer debits (PPD), corporate agreement for B2B (CCD), explicit click-disclosure for online (WEB), and recorded consent for phone-initiated (TEL).

Same-Day ACH

Three Same-Day ACH windows per business day (10:30 AM, 2:45 PM, and 4:45 PM ET cutoffs) — funds available to the receiver the same day, up to $1M per transaction. Standard ACH settles in 1–2 business days at a lower rate.

Account Validation Built In

Nacha's WEB Debit rule requires that you validate every bank account before the first debit. We provide instant verification through Plaid, micro-deposit verification, and prenote — so accounts are confirmed before money moves.

Full SEC Code Coverage

PPD for consumer prearranged debits, CCD for B2B, WEB for internet-authorized, TEL for phone-initiated, ARC and BOC for check conversion. We configure the right code on every batch so returns and disputes get classified correctly.

2026 Fraud Monitoring Ready

Nacha's new Risk Management rules go into effect in March and June 2026, requiring originators to monitor for credit-push fraud (BEC, vendor impersonation, payroll redirection). Our platform implements the rule changes — including the new PAYROLL and PURCHASE descriptors — before the deadline.

24/7 Live Support

When a return hits with an unfamiliar code, when a customer's account verification fails, or when settlement is delayed, you reach a real person — not a help center. Our ACH operations team is available around the clock.

From Authorization to Settlement

Every ACH transaction follows the same lifecycle. KAJA handles the parts that involve the network — you handle the customer relationship.

1

Authorize & Validate

Your customer signs (or clicks, or speaks) a Nacha-compliant authorization granting permission for the debit or credit. KAJA validates the bank account with Plaid, micro-deposit, or prenote before the first transaction settles — satisfying the WEB Debit Account Validation rule.

2

Originate the Entry

You submit the transaction through our gateway or API. KAJA, acting as your Originating Depository Financial Institution (ODFI) relationship, formats the entry with the right SEC code, attaches the proper addenda, and submits it to the ACH Operator (FedACH or EPN) in the next available window.

3

Settle & Reconcile

The Receiving Depository Financial Institution (RDFI) posts the entry to your customer's account. Funds settle in 1–2 business days for Standard ACH or the same business day for Same-Day ACH. KAJA reconciles returns and exceptions, and surfaces every R-code with a plain-English explanation.

ACH vs. Wire vs. Check

Three ways to move money bank-to-bank in the U.S. — each with very different economics and use cases.

ACH Wire Transfer Paper Check
Typical cost Flat $0.25–$1.50 or 0.5%–1% capped $15–$50 per wire "Free" — plus clearing time & manual handling
Settlement time Same day to 2 business days Minutes (domestic) 2–10 business days
Per-transaction limit $1M Same-Day; no Nacha cap on Standard None (institution-set) None
Reversibility Returns within 2 banking days (admin) / 60 days (unauthorized) Generally irrevocable Stop-payment available
Authorization required? Yes — Nacha-compliant Originator instruction Drawer signature
Best for Recurring billing, B2B, payroll, high-ticket Real estate, large one-off transfers Legacy receivables
Same-Day ACH cutoff windows (ET): submit by 10:30 AM for 1:00 PM settlement, by 2:45 PM for 5:00 PM settlement, or by 4:45 PM for 6:00 PM settlement. Files submitted after the last window roll to the next business day. The Same-Day limit is $1 million per transaction for both credits and debits, with no daily aggregate cap from Nacha.

Where ACH Replaces Cards or Checks

Any business with predictable, recurring, or high-ticket invoicing benefits from moving volume off card rails. These are the categories where we see ACH adoption move the needle most.

SaaS & Subscriptions B2B Invoicing (AP/AR) Payroll & Direct Deposit Property Management & Rent Insurance Premiums Healthcare Billing Lending & Loan Repayment Tuition & Education Utilities & Membership Dues Nonprofit Donations Marketplace Payouts Wealth & Investment Platforms

Program Features

ACH Credits & Debits Standard & Same-Day ACH $1M Same-Day Limit All SEC Codes Supported Plaid & Micro-Deposit Verification Recurring & One-Time Schedules 2026 Fraud Monitoring Built In Return-Code Reporting OFAC & BSA/AML Screening 24/7 Live Support

Frequently Asked Questions

How long does an ACH payment take?

Standard ACH settles in 1–2 business days. Next-Day ACH settles the following business day. Same-Day ACH settles within the same business day if submitted before one of the three cutoff windows (10:30 AM, 2:45 PM, or 4:45 PM ET). The clock starts when KAJA submits your file to the ACH Operator, not when you press the button — so submitting close to a cutoff may push to the next window.

What's the difference between ACH and a wire transfer?

Wires settle in minutes and are generally irrevocable, but they cost $15–$50 each and require manual initiation. ACH settles in 1–2 business days (or same-day for an extra fee), costs cents per transaction, and supports automated batching of thousands of payments at once. For recurring billing, payroll, or any volume use case, ACH is dramatically more economical. Wires are still the right choice for time-critical, one-off transfers like real estate closings.

What does ACH processing cost?

KAJA prices ACH at a small flat per-transaction fee (typically $0.25–$1.00) or a low capped percentage, depending on your volume and risk profile. Same-Day ACH carries a slightly higher fee than Standard. There are no interchange tiers, no card brand assessments, and no per-batch fees buried in the statement. We'll quote your exact rate after a brief look at your volume and use case.

What's the maximum I can send via ACH?

Nacha lifted the Same-Day ACH per-transaction limit to $1 million for both credits and debits in March 2022. Standard ACH has no per-transaction limit set by Nacha — but your originating bank (and our gateway) will set risk-based limits during onboarding based on your business profile.

How is ACH authorized? Do I need written consent?

Yes — Nacha requires authorization for every debit, with the form depending on the SEC code. PPD (recurring consumer debits) requires written and signed authorization. CCD (B2B) requires a written corporate agreement. WEB (internet-initiated consumer) requires explicit click-disclosure with a verifiable record. TEL (phone-initiated) requires either a recorded verbal consent or a written confirmation mailed before the first debit. KAJA provides authorization templates for each code.

What are SEC codes and which one should I use?

Standard Entry Class (SEC) codes tell the ACH network what kind of transaction you're sending. The common ones: PPD (consumer prearranged debits — used for recurring billing and direct deposit), CCD (corporate credits/debits — used for B2B and payroll), WEB (consumer authorized over the internet), TEL (consumer authorized over the phone), ARC (one-time check conversion received in the mail), and BOC (back-office check conversion at point of sale). We configure the right code automatically based on how the customer authorized you.

Can ACH payments be reversed or disputed?

Yes — through the Nacha return process. Administrative returns (R01 insufficient funds, R02 account closed, R03 no account, R04 invalid account) must be returned within 2 banking days of settlement. A consumer claim of unauthorized debit (R05, R07, R10, R11, R51) can be returned within 60 calendar days. Corporate unauthorized claims (R29) are capped at 2 banking days. Compared to card chargebacks (up to 120 days, network-arbitrated), ACH return windows are tighter and more predictable.

How do you verify a customer's bank account before debiting?

Three ways, depending on your flow. Instant verification via Plaid asks the customer to log into their bank and confirms account ownership in real time. Micro-deposit verification sends two small deposits the customer reads back to you — typically 1–2 days. Prenote sends a zero-dollar transaction through the ACH network to confirm the account exists and is open. Nacha requires one of these methods for WEB Debit originators before the first debit.

What are the new Nacha fraud rules for 2026?

Nacha's Risk Management Phase 1 takes effect March 20, 2026 for ODFIs, large originators, and large RDFIs; Phase 2 takes effect June 19, 2026 for everyone else. The rules require fraud monitoring on credit-push transactions (BEC, vendor impersonation, payroll redirection), introduce new transaction descriptors (PAYROLL and PURCHASE) so RDFIs can flag suspicious credits, and expand the definition of "false pretenses" so unauthorized returns can be filed in more scenarios. KAJA implements the rule changes in advance of the deadlines — you don't have to track the compliance work.

Is the ACH network secure?

ACH is one of the most heavily-regulated payment networks in the U.S. — overseen by Nacha, operated by the Federal Reserve and The Clearing House, and subject to OFAC, BSA/AML, and KYC requirements. KAJA encrypts all customer bank data in transit and at rest, screens every counterparty against the OFAC SDN list, applies velocity limits, and routes high-risk patterns through our fraud monitoring team before originating.

Can I send ACH payments internationally?

No. ACH is a domestic U.S. network (it also covers Puerto Rico). For international transfers, you'd use a wire (Fedwire/SWIFT) or a cross-border payment provider. We can advise on whether a hybrid setup — ACH for U.S., wire or other rails for international — fits your business.

How quickly can I start originating ACH?

Most KAJA ACH accounts are live within 5–10 business days. Onboarding includes underwriting (your business profile, expected volume, return-rate tolerance), connecting our gateway or API to your billing system, and setting up authorization templates for the SEC codes you'll be using. Higher-volume or higher-risk accounts may take longer for risk review.

Move More Money for Less

Talk to KAJA about whether ACH fits your business. We'll model your current card and wire volume against an ACH alternative and quote you a flat rate before you commit.