An ACH payment is an electronic transfer of money from one US bank account to another, processed through the Automated Clearing House (ACH) network. Most Americans have been using the ACH network for years without realizing it.

PayPal uses this network whenever a customer makes a payment that’s funded from their US bank account.

It can take up to 2 business days for an ACH payment to complete and the money to appear in the recipient’s PayPal account. The payment will show as “pending” until it clears.

Before making a payment, be sure you’ve enough money in your bank account to cover it. If a payment is rejected due to insufficient funds, your PayPal balance could go negative.