Next-day settlement is a timing arrangement under which a payment submitted on one business day is settled, meaning the money actually moves between the institutions involved, on the following business day. It is often written T+1. Weekends and bank holidays do not count, so a payment sent on Friday settles on Monday.
In the United States the term is closely tied to the ACH network. A standard next-day ACH entry is sent in a batch file before the bank's cut-off time and settles the next banking day, in contrast to Same Day ACH and other forms of same-day settlement. In card acquiring, the phrase describes a provider that pays a merchant's sales into its bank account on the business day after the transactions were captured, the fastest ordinary merchant settlement cycle. In both cases the delay reflects batch processing and a fixed settlement cycle, not the time needed to send a message.