ACH (Automated Clearing House) vs FedNow Service: what is the difference?
ACH moves batched credits and debits that settle the same day or on a later business day. FedNow settles each payment in real time, 24 hours a day, and the recipient can use the money immediately.
| ACH (Automated Clearing House) | FedNow Service | |
|---|---|---|
| In one line | ACH (Automated Clearing House) is the US network that moves batched electronic credits and debits, such as payroll, bill payments and business-to-business transfers, between bank and credit union accounts. Payments settle the same day or on a later business day, not in real time. | The FedNow Service is the Federal Reserve's instant payment system, which lets participating US banks and credit unions send and receive payments in real time, 24 hours a day, every day of the year. Recipients get full access to the funds immediately. |
| Read more | ACH (Automated Clearing House) | FedNow Service |
How they work together
A payment company may fund through ACH for cost and through FedNow when the money has to land now, such as a top-up before a weekend.
Where Polynopsis fits
Polynopsis keeps ACH transfers in flight until they settle, so money sent today for settlement tomorrow is not counted as available yet.
Polynopsis keeps the position live across banks, payout partners and wallets, so instant dollar movements show up in the day's position as they happen.
Frequently asked questions
What is the difference between ach (automated clearing house) and fednow service?
ACH moves batched credits and debits that settle the same day or on a later business day. FedNow settles each payment in real time, 24 hours a day, and the recipient can use the money immediately.
What is ACH (Automated Clearing House)?
ACH (Automated Clearing House) is the US network that moves batched electronic credits and debits, such as payroll, bill payments and business-to-business transfers, between bank and credit union accounts. Payments settle the same day or on a later business day, not in real time.
What is FedNow Service?
The FedNow Service is the Federal Reserve's instant payment system, which lets participating US banks and credit unions send and receive payments in real time, 24 hours a day, every day of the year. Recipients get full access to the funds immediately.
Sources
- What is ACH · Nacha
- Same Day ACH and business-to-business payments propel ACH Network volume growth in 2025 (28 January 2026) · Nacha
- Fedwire Funds Services · Board of Governors of the Federal Reserve System
- Federal Reserve announces that its new system for instant payments, the FedNow Service, is now live (20 July 2023) · Board of Governors of the Federal Reserve System
- About the FedNow Service · Federal Reserve Financial Services
- FedNow Service volume and value statistics · Federal Reserve Financial Services
- Customer credit transfer and liquidity management transfer network limit increases (12 November 2025) · Federal Reserve Financial Services
- Announcing 2026 Federal Reserve Financial Services fees and payment system enhancements (4 December 2025) · Federal Reserve Financial Services
- Federal Reserve action to expand Fedwire Funds Service and National Settlement Service operating hours (Federal Register notice, October 2025) · Board of Governors of the Federal Reserve System
Know where all your money is.
Polynopsis gives cross-border payment teams one live position across every bank, payout partner, exchange and wallet, including money in flight, and warns before a corridor runs dry.
About Polynopsis
Polynopsis is liquidity management software for cross-border payment companies. The name joins poly, many, and synopsis, a seeing together: one live view of money spread across many banks, payout partners, exchanges and stablecoin wallets, including money in flight, with a warning before any corridor runs dry.
Why it is called Polynopsis · About Polynopsis · Glossary · Corridor runway calculator