Context

Merchants often have questions about when payments will process and when funds will be available in their bank accounts. Understanding the difference between settlement timelines and funds availability is crucial for managing expectations around payment behavior.

Answer

GrailPay offers two ACH processing options with different settlement timelines:

Standard ACH Settlement

• Timeline: 4 day settlement

• Processing: All Standard ACHs process at 5:30pm ET each day

• Important note: If a Standard ACH is initiated at 5:31pm ET, it will process the following day at 5:30pm ET, and the 4-day timeline begins from that point

Fast ACH Settlement

Fast ACH offers same/next-day settlement, but the exact timing depends on when the transaction was created and the merchant's payout settings:

For merchants on individual payouts:

• Transactions created before 1:00pm ET will settle same-day, usually between 4-6pm ET

• Transactions created after 1:00pm ET will settle next day

For merchants on batch payouts:

• Fast ACH will always be next day settlement

• Merchants receive their funds each morning in one lump sum of all ACH payments from the previous day

Settlement vs. Funds Availability

It's important to understand the distinction between these two concepts:

Settlement: When GrailPay receives the final update from a bank that all expected lifecycle stages of an ACH have completed as expected. This is what the timelines above refer to.

Funds Availability: When the dollars from a payment are actually available in the merchant's bank account. GrailPay has no control over this timing, as it varies by:

• Financial institution policy

• Different departments within financial institutions

• Different account types

GrailPay can confirm when payment data has completed end-to-end processing, but cannot see when funds become available within merchant accounts.