ACH Transfers

Overview

ACH Consent is mandatory per ACH transfer.

ACH transactions are routine, high-volume, low-cost payments between U.S. bank accounts on the ACH network, an electronic funds-transfer system run by Nacha (National Automated Clearing House Association).

Unlike wire transfers, ACH transactions are processed in batches at scheduled intervals throughout the day, making them good for recurring payments, payroll, and situations where low cost matters more than speed. ACH payments may be processed on a same-day or next-day basis, or through standard processing, which can take multiple days.

See Add Funds to an Account for ACH API examples. See ACH v2 in the Events Reference for notifications.

ACH consent

Per NACHA rules, ACH transfers require documented account holder authorization. Use a consent template to capture it for each transfer:

• In TransferAgreementConsentTemplateInput, consentTemplateId and consentTemplateVersion values are defined by your system.
• In TransferAgreementConsentInput: authorizedPersonId is the accountHolderId for Person account holders, and primaryAuthorizedPersonId for Business account holders.

Account status eligibility

The following table lists ACH transfer eligibility by their Highnote financial account status.

Financial Account Status	Debit / Prepaid	Credit	ACH Transfer Eligibility
ACTIVE	Yes	Yes	All transfer types supported
SUSPENDED	No	Yes	Limited transfer capabilities, case-by-case basis
UNDER_REVIEW	No	Yes	Restricted transfers pending investigation
PENDING_CLOSURE	No	Yes	No new scheduled transfers, existing transfers may complete
CLOSED	No	No	No transfers permitted

ACH core concepts

odfi and rdfi

Only Highnote can initiate an originated transfer, and only an external party can initiate a non-originated transfer. But per ACH standard terminology, the bank of the initiator (Highnote or external party) is always the Originating Depository Financial Institution (ODFI), and vice versa, the bank of the non-initiator is always the Receiving Depository Financial Institution (RDFI).

A Highnote ACH transfer begins when either Highnote or an external party initiates a transaction (debit or credit) on the ACH network.

• Initiator: Any party (Highnote or an external party) who initiates a push or pull transaction.
• Originated transfer: Transfers initiated on the Highnote platform by Highnote.
• Non-originated transfer: Transfers initiated outside of the Highnote platform by an external party.

Transfer type, method, effect

Note the following transfer terms:

• Transfer type is determined by the initiator: Originated ACH Transfers are initiated by Highnote on the Highnote platform, and Non-Originated ACH Transfers are initiated by an external party outside of the Highnote platform.
• Transfer method is determined by the initiator who either pushes or pulls funds.
• Transfer effect describes what happens to Highnote's account (which is credited or debited).

Transfer Type	Method	Effect (Highnote's perspective)	Description
Originated	Push	Debit/Fund out	Highnote initiates an ACH instruction to push funds from a Highnote financial account (which is debited) to an external bank account.
	Pull	Credit/Fund in	Highnote initiates an ACH instruction to pull funds from an external bank account into a Highnote financial account (which is credited).
Non-originated	Push	Credit/Fund in	An external bank initiates an ACH instruction to push funds from their bank account to a Highnote financial account (which is credited).
	Pull	Debit/Fund out	An external bank initiates an ACH instruction to pull funds from a Highnote financial account (which is debited) into their bank account.

Instruction and money flows

Processing schedule

Originated

Originated ACH (OACH) transfer events transition on this general timeline:

• ORIGINATED_ACH_TRANSFER_INITIATED → ORIGINATED_ACH_TRANSFER_PENDING: This transition occurs almost immediately. Once the ACH transfer is initiated, Highnote moves it to a Pending state within seconds to secure the necessary funds (for example, we temporarily reduce available cash for ACH pushes).

• ORIGINATED_ACH_TRANSFER_PENDING → ORIGINATED_ACH_TRANSFER_PROCESSING: Transfers typically move to Processing within the next scheduled batch window. Highnote runs batch processing multiple times per business day, so most transfers progress to this state within a few hours of initiation.

• ORIGINATED_ACH_TRANSFER_PROCESSING → ORIGINATED_ACH_TRANSFER_PROCESSED: Processing and settlement generally complete within 2–3 business days, depending on standard ACH clearing schedules. Transfers initiated late in the day or on weekends begin processing on the next business day.

Non-originated

Non-originated ACH (NOACH) transfer events are processed based on the settlement date marked by the Fed in the transaction itself. We process same-day on receipt and next-day at the start of the next business day.

Example use cases

Originated Push - Highnote debited, External account credited

• Customer refunds
• Cash-out from prepaid
• Gig worker payouts
• Expense reimbursements

Originated Pull - Highnote credited, External account debited

• All credit card payments and autopay
• Prepaid card loading
• Fleet fuel payments
• Charge card full payments

Non-originated Push - Highnote credited

• Direct deposits (payroll, benefits)
• Business funding for AP automation
• Corporate payments to subsidiaries
• Tax refunds and government payments

Non-originated Pull - Highnote debited

• External bill pay services
• Third-party payment processors
• Corporate treasury management
• Bank-initiated transfers