Execute ACH Transfers Accurately and Consistently
Overview
To help business owners manage their ACH responsibilities, we’ve organized ACH best practices into four clear stages. Together, these stages provide a practical framework for reducing risk, maintaining compliance, and strengthening transaction processes over time.
Stage 2:
Execute ACH Transfers
Once ACH setup is complete, execution determines timing, accuracy, and follow-up. Follow these best practices to keep transfers consistent and on track.
Check transfer details before you send
Confirm transfer details before every submission. Review the amount, ensure the effective date aligns with when funds should arrive, and verify account and routing information against your records. This step prevents delays and follow-up.
Example:
A transfer is scheduled for Thursday, but the effective date is entered as Friday. The recipient expects funds early and follows up when they do not arrive. A quick review keeps expectations aligned.
Plan around cutoff times
ACH processing follows a set schedule, so timing determines delivery. Confirm cutoff times, expected settlement timing, and any impact from weekends or holidays before submitting. This helps control when transfers are processed.
First Bank cutoff times are posted here on the Treasury Services Hub
Example:
A payroll file is created and submitted for approval by a second authorized user. The approval is not completed before the daily cutoff time, so the transfer is not processed that day. Planning ahead ensures enough time for required reviews and approvals before processing deadlines.
Communicate changes early
Communicate changes as soon as they occur. Notify recipients when a transfer date or amount changes. This reduces confusion and avoids unnecessary follow-up.
Example:
A vendor expects funds on the 1st, but the transfer is sent on the 2nd. A simple update keeps the relationship on track.
Use a consistent process
Submit transfers the same way each time. Use a consistent time, format, and review step before release. A simple workflow ensures nothing is missed.
Typical flow:
- Enter transfer details
- Review for accuracy
- Approve using required dual controls
- Submit before cutoff
- Verify status in Activity Center
Confirm the transfer was processed
After submitting a transfer, review its status in the Activity Center. Confirm the transaction shows a status of Processed and review any messages, exceptions, or errors that may require attention.
Monitoring transaction status helps verify that transfers were successfully processed and can help identify approval issues or other items that need follow-up.
Learn more: View our tutorial on using the Activity Center and understanding ACH transaction statuses.
Example:
A payroll file is entered by one user and requires approval from a second authorized user. The file is not approved before the daily cutoff time, so it is not processed. Reviewing transaction status in the Activity Center helps identify the issue so the payroll file can be recreated and submitted for processing the next business day.
Final takeaway
Consistent execution keeps ACH transfers reliable.
Reviewing details, planning timing, following approval procedures, and monitoring transaction status helps ensure transfers are processed as expected.
