How do ACH debits work?

[matin]

#3 tries to address how Balanced should define a ACH debit interface, but it's important to first understand the constraints of ACH before moving forward on how the interface looks.

Specifically:

• how long until an ACH debit is confirmed to have happened?
• how long until the funds become availble from issuing the request?
• are the funds guaranteed after a successful response is returned from the ODFI?
• how long until the ACH debit is rejected?
• what rejection reasons are provided?

Add anything not included in this list, and I'll update this summary.

[matin]

@mahmoudimus can you drop some wisdom bombs on us?

[matin]

• one business day relies on the request clearing before the ACH cut-off (4:30pm Pacific).

how long until an ACH debit is confirmed to have happened?

one business day

how long until the funds become availble from issuing the request?

one business day

are the funds guaranteed after a successful response is returned from the ODFI?

yes

how long until the ACH debit is rejected?

one business day

what rejection reasons are provided?

Still trying to gain more information on the rejection codes, but it will be documented in the spec.