ACH Processing Disclosure
Last Updated: May 1, 2026
ACH Network Overview
The Automated Clearing House (ACH) Network is a nationwide electronic payment system that processes credit and debit transactions. ACH is governed by NACHA (National Automated Clearing House Association) operating rules and regulations.
SkyFi provides access to ACH processing through Grasshopper Bank, N.A., Member FDIC. All ACH transactions are subject to NACHA rules and federal regulations. SkyFi's Pay-by-Bank product uses same-day ACH as its settlement rail, enabling first-settlement timing for qualifying payments.
Processing Schedule
Business Days
ACH processing operates Monday through Friday, excluding federal holidays. Transactions submitted on weekends or holidays will be processed on the next business day.
Same-Day ACH
Same-day ACH allows for faster processing of qualifying transactions. The ACH network operates three same-day processing windows:
Morning window
Afternoon window
Evening window
Transactions must be submitted before the applicable cutoff time for each window. Contact support for specific cutoff times (Eastern Time).
Standard ACH
Standard ACH transactions are processed on the next business day. Transactions submitted after same-day cutoffs or those that do not qualify for same-day processing will follow the standard processing schedule.
ACH Credits & Debits
ACH Credits
ACH credits push funds from your account to a recipient's account. Common uses include:
- Direct deposits
- Vendor payments
- Tax payments
- Pension distributions
ACH Debits
ACH debits pull funds from an account with proper authorization. Common uses include:
- Customer payment collections
- Recurring billing
- Account-to-account transfers
- Subscription payments
NACHA Rules Compliance
All ACH transactions must comply with NACHA operating rules. Key requirements include:
- Proper authorization for ACH debits
- Accurate account and routing information
- Appropriate SEC codes for transaction types
- Compliance with timing and formatting standards
- Proper notification requirements for consumers
Violations of NACHA rules may result in transaction returns, penalties, or suspension of ACH privileges.
Returns and Exceptions
Return Timeframes
Standard returns
Within 2 banking days of settlement
Non-sufficient funds (NSF)
Within 2 banking days
Unauthorized debits
Within 60 calendar days (consumers)
Administrative returns
Varies by reason code
Common Return Reasons
- Insufficient funds in the account
- Invalid account number or routing number
- Account closed
- Unauthorized transaction
- Customer stop payment request
Return Handling
When an ACH transaction is returned, you will receive notification with the return reason code. Returned funds will be debited from your account. You are responsible for addressing the cause of the return and taking appropriate action.
Error Resolution
Reporting Errors
If you identify an error in an ACH transaction, contact support immediately. Provide detailed information about the transaction including date, amount, and description of the error.
Investigation Process
Upon receiving notice of an error, Grasshopper Bank will investigate in accordance with applicable regulations. You may be required to provide documentation or additional information to support the error claim.
Resolution Timeframes
Error investigations are conducted in accordance with Regulation E and other applicable regulations. Resolution timeframes vary based on the nature of the error and available information.
Validation and Pre-Notification
Account Validation
SkyFi performs automated validation of account and routing numbers before processing ACH transactions. This helps reduce errors and returns, but does not guarantee that an account is valid, open, or has sufficient funds.
Prenote Transactions
Prenote (pre-notification) transactions are zero-dollar ACH entries used to validate account information before initiating live transactions. Prenotes are recommended for new recipients to verify account details.
Pay-by-Bank and Same-Day ACH
SkyFi's Pay-by-Bank product is a payment experience built on top of same-day ACH rails. It is not a separate payment network — ACH is the settlement mechanism, and same-day ACH is what enables first settlement within the same business day.
What "Pay-by-Bank" means
Pay-by-Bank is the branded product name for SkyFi's bank-direct payment flow. Customers authenticate through their bank and authorize an ACH debit — no card network is involved.
- Customer authenticates directly at their bank
- Authorization is verified before any funds move
- Payment is submitted as a same-day ACH debit
- No card network, no interchange fee
What "First Settlement" means
Same-day ACH delivers the first settlement window on the day the payment is submitted (subject to cutoff times). This is called "first settlement" because funds move on day one, not the next business day.
- Payment submitted before cutoff → settled same day
- Merchant receives funds in the first available window
- No waiting until next business day for standard ACH
- Subject to NACHA same-day ACH eligibility rules
Pay-by-Bank payments are ACH debits and are subject to all standard NACHA rules, return timeframes, and return risk. "First settlement" describes the timing of the initial credit to the merchant — it does not eliminate the possibility of a return within the applicable return window.
Transaction Limits
Standard Daily Limit
Above Limit
Monthly Cap
$25,000
Requires identity verification
None
Outbound ACH transfers above $25,000 per day require identity verification before the transaction can be processed. Limits are set by Platform Tier — higher tiers unlock elevated limits. Contact support to upgrade your tier or request a limit increase.
Limits apply to outbound ACH initiated through SkyFi. Inbound ACH credits do not count against outbound daily limits. New accounts may be subject to lower limits for the first sixty days. See the Transaction Limits table in the General Terms for a full breakdown by transaction type.