Night Cycle

DEFINITION of 'Night Cycle'

An option created in 1979 to process Automated Clearing House (ACH) transfers (debits and credits) at night, generally between 10:00 p.m. and 1:30 a.m. Eastern Standard Time (EST). The ACH is a nationwide system for transferring money electronically.

Also referred to as the "nighttime window."

BREAKING DOWN 'Night Cycle'

Corporations use night-cycle processing to move funds into concentration accounts, which are centralized deposit accounts used by institutions to aggregate funds and process and settle internal bank transactions. It stands in contrast to the day cycle, which allows processing of ACH transfers between 8:00 a.m. and 1:00 p.m. EST.

RELATED TERMS
  1. Automated Clearing House - ACH

    An electronic funds-transfer system run by the National Automated ...
  2. Green Book

    A comprehensive guide for financial institutions processing federal ...
  3. Electronic Payments Network - EPN

    An electronic automated clearing house (ACH) that serves as the ...
  4. Corporate Trade Exchange - CTX

    A monetary transfer system used by corporations and governmental ...
  5. Clearing

    The procedure by which an organization acts as an intermediary ...
  6. Wire Transfer

    An electronic transfer of funds across a network administered ...
Related Articles
  1. Personal Finance

    Best Ways to Send Large Sums of Money Abroad

    Understand why it may be difficult to send large sums of money internationally. Learn about the top five ways to send large sums of money abroad.
  2. Trading

    These Are The Best Hours To Trade the British Pound

    The best times to trade the British pound are centered around economic releases at 1:30 am, 2:00 am, 8:30 am and 10:00 am U.S. ET.
  3. Personal Finance

    Transferring Credit Card Balances To A New Card

    Before you take advantage of that new credit card's 0% interest balance transfer offer, read our step-by-step guide.
  4. Investing

    Inside National Payment Systems

    Investopedia explains: The global interconnection of U.S. payment systems makes commerical and financial transfers possible.
  5. Investing

    2015's Best Balance Transfer Credit Card Promotions

    Trying to pay off a credit card balance at too high an interest rate? You might save a good chunk of cash with one of these balance transfer promotions.
  6. Markets

    The Best Banking Services for Your Business

    Find out which banking services can offer a small business the best opportunities for reducing cost and fraud while managing its cash flow more efficiently.
  7. Investing

    Visa CEO Takes a Swipe at PayPal

    The credit card companies and PayPal (NASDAQ: PYPL) have long had an uneasy alliance: They both work together and compete with each other. But Visa (NYSE: V)CEO Charlie Scharf thinks that the ...
  8. Trading

    Understanding Forex Rollover Credits And Debits

    Forex trades are subject to receiving interest or being debited interest if positions are held overnight.
  9. Investing

    What Does Debit Mean?

    Debit is an accounting term used to refer to the left side of an accounting journal entry. Each debit must be offset by an equal credit entry.
  10. ETFs & Mutual Funds

    What Does a Transfer Agent Do?

    Transfer agents maintain the records and documents related to shareholder accounts.
RELATED FAQS
  1. Can a brokerage firm liquidate my shares and keep my money?

    I had a stock trading account with Capital One investing. This was a cash account. I did 3-4 ach transfers from my bank to ... Read Answer >>
  2. How liquid are BlackRock mutual funds? (BLK)

    Discover if BlackRock mutual funds are liquid. Learn about the available payment options and how long it takes for a payment ... Read Answer >>
  3. During what time does after-hours trading (AHT) occur?

    A lot of buying and selling can be done outside of the traditional trading hours. Find out when after-hours trading starts ... Read Answer >>
  4. Are there any regulations on transfer pricing?

    Learn about transfer pricing, its role in intra-business calculations, and how the U.S. government regulates transfer pricing ... Read Answer >>
  5. What happens when my bank account is debited?

    Understand the process that takes place when your account is debited. A debit to your account happens when you use funds ... Read Answer >>
  6. When do stock market exchanges close?

    Learn about stock exchanges, the main function of stock market changes and the opening and closing times of some major stock ... Read Answer >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center