Why do bank transfers take so long? (+ How to speed them up)

Why it is slow

An ACH payment is a type of electronic bank transfer that runs through the Automated Clearing House network. Instead of moving money instantly, this system is designed for efficient, high-volume processing.

For example, in the United States, these transactions are governed by Nacha, the organization that sets the rules for the ACH network.

ACH and similar clearing systems don’t process transactions in real time. Instead, banks group payments into batches and send them at fixed intervals during the day.

Here’s how it works in practice:

• Funds move from the payer’s account to the recipient’s account through two banks:
• The Originating Depository Financial Institution (ODFI);
• The Receiving Depository Financial Institution (RDFI).
• Payments are not processed one by one. Instead, banks group transactions into batches and send them at fixed times during the day.

 ACH payment (Automated Clearing House)

At scale, this system is extremely powerful. In a report by NACHA, Overall ACH Network Volume 2025 alone, Same Day ACH payment volume reached 1.4 billion payments for the year, valued at $3.9 trillion.

ACH Network Growth since 2016: Source: Nacha

However, this system creates a hidden delay: If your transfer arrives after the cutoff time, it doesn’t get processed immediately — it simply waits for the next batch cycle. In practice, that can mean a delay of several hours, v.v or an entire business day.

How to speed up

Timing is everything here. Send your transfer at the end of the previous day aroud 4PM or early in the morning (around 8 AM) of a working day  to catch the first processing batch.

This gives your payment the maximum chance to move through the system on the same day.

If you send late in the afternoon, you’re effectively choosing to wait.

Not all banks are directly connected. In some cases, one or more Intermediary banks help process the payment, especially if the two banks are banks from different countries with no direct relationship or they are dealing with different currencies. This can affect how long the transfer takes and how much it costs.

Each intermediary adds:

• Processing time;
• Compliance checks;
• Potential queuing delays.

Intermediary banks

The result? A transfer that looks simple on the surface can involve multiple hidden steps behind the scenes. In addition, intermediary banks are also one of may reasons your payments do not received in full amount.

How to speed up

Choose banks or payment providers that offer direct transfer corridors to your destination country.

Fintech platforms and international banking solutions often optimize this by minimizing or bypassing intermediaries.

Cross-border transfers look simple on the surface, money moves from one country to another.

In reality, they involve multiple systems, currencies, and institutions working in sequence.

In the international transfer domain, a SWIFT transfer is the dominant messaging system used to transfer money from one bank to another accross countries.

Even with a system of interconnected banks within the SWIFT system, a report of Statrys showed that SWIFT transfers typically take around 27h to transfer money

International transfer

Here’s where the complexity of international transfer comes from:

• Different banking systems: Each country operates on its own infrastructure, processing timelines, and settlement rules;
• Time zone differences: Your bank may process the payment instantly, but the receiving bank could be offline or outside business hours;
• Local compliance requirements: Cross-border transfers often go through additional checks (AML, sanctions screening, documentation review), which can pause the transaction.

But the biggest hidden factor is currency conversion.

When a transfer involves two currencies, it’s no longer just a payment.

It becomes a multi-step financial process:

1. Foreign exchange (FX) pricing and execution: The bank must determine the exchange rate and execute the currency trade.
2. Liquidity sourcing: Funds may need to be sourced through correspondent banks to match the required currency.
3. Multi-currency settlement: The transaction must settle across two separate currency systems, not just one.

How to speed up

You can’t remove the complexity of international transfers — but you can reduce friction at every step.

Our banking experts offer you 3 tips to help you make international transfers faster

Transfers within the same bank are fast because everything happens inside a single, controlled system.

The bank already holds both accounts, so it can instantly update balances without needing to “ask” anyone else.

But the moment you send money to another bank, the process changes completely.

The transaction now has to move through interbank clearing networks, where multiple institutions must coordinate before funds are finalized.

Here’s what actually happens behind the scenes:

• Your bank sends the payment instruction out to the network;
• The receiving bank validates the details and confirms the account;
• Clearing systems reconcile balances between the two institutions;
• Settlement occurs, sometimes immediately, but often in scheduled cycles.

Each of these steps introduces latency.

How to speed up

If you want to speed up bank transfers, you can consider these 2 approaches:

Stay within the same bank when possible

• Transfers within the same bank are usually instant or near-instant;
• No clearing, no intermediaries, no settlement delays.

→ If speed is critical, this is always the fastest option.

Many countries now support real-time payment networks that bypass traditional clearing delays.

Examples globally include:

• Faster Payments (UK);
• UPI (India);
• Real-time rails in Singapore and the EU.

These systems:

• Process payments 24/7;
• Settle within seconds or minutes;
• Reduce dependency on batch cycles.

→ If your country supports it, this is the best alternative to same-bank transfers.

Why it’s slow

Banks are not just processing payments they are also responsible for preventing financial crime.

Every transaction is screened under Money Laundering and Terrorism Financing (ML/FT) regulations, using automated systems and, in some cases, manual review.

This is where delays can become unpredictable.

Here’s what typically triggers a review:

• Unusual transaction patterns: Sudden large transfers, new recipients, or activity that doesn’t match your history;
• High-risk jurisdictions or industries: Certain countries or business types require enhanced scrutiny;
• Inconsistent or incomplete information: Missing payment purpose, unclear sender/receiver details;
• Regulatory flags: Sanctions screening, AML checks, or internal risk scoring.

When a transaction is flagged:

• It may be paused for manual review;
• Additional documents may be requested;
• In rare cases, accounts can be temporarily restricted or frozen.

On top of that, banks may need to respond to external regulatory inquiries or government checks, which adds another layer of delay outside their direct control.

For example, according to the federal law in the United States, federal law requires banks to report any cash transactions over $10,000 made by or for one person.

This also includes multiple transactions that add up to more than $10,000 within a single day.

Filing obligation in the U.S for transaction more than 10,000 USD

How to speed up (and avoid delays)

You can’t bypass compliance, but you can make your transactions low-risk and easy to approve.

Why it’s slow

Banks do not process transactions on non-working days, and that includes weekends and public holidays.

This might sound obvious, but in practice, it creates hidden delays that many people underestimate.

Here’s what actually happens:

• If you send a transfer on a bank holiday, it doesn’t start processing;
• It simply sits in the queue until the next working day;
• If multiple non-working days stack (e.g. weekend + holiday), the delay compounds.

For example:

• If you send on Friday evening, the transfer is processed on Monday;
• If Monday is a holiday, the transfer is processed on Tuesday.

Look out for holidays when sending money (Source: Ministry of Manpower Singapore)

For international payments, the effect is amplified: Your bank in your country may be working. But the receiving bank in your partner’s country may be on holiday. Your bank sends the payment. But the receiving bank is closed and cannot process it This creates a silent delay in the middle of the transaction.

In some cases, intermediary (correspondent) banks may also be in different regions with their own holiday schedules.

How to speed up