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What Does ACH Period Limit Mean?
Automated Clearing House (ACH) period limit is a term used to describe the maximum amount of time that a payment can take to be processed. This is usually set by the financial institution that is handling the transaction. The ACH period limit is important because it helps to ensure that payments are processed quickly and accurately.
The ACH period limit is typically set at a certain number of days. This number can vary depending on the financial institution, but it is usually between one and three days. The ACH period limit is important because it helps to ensure that payments are processed in a timely manner. If the payment takes longer than the ACH period limit, then the transaction may be declined or returned.
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The ACH period limit is also important for businesses that are accepting payments from customers. If the payment takes longer than the ACH period limit, then the business may be charged a fee. This fee is typically a percentage of the total amount of the payment.
The ACH period limit is an important part of the payment processing system. It helps to ensure that payments are processed quickly and accurately. It also helps to protect businesses from potential losses due to late or returned payments.