Same Day ACH Payments Approved by NACHA

Watch this video from NACHA on Same Day ACH.

The credit unions, banks, and other members of NACHA, the electronic payments association, approved a proposal to allow same-day payments between the nation’s 12,000 financial institutions.

NACHA oversees the automated clearing house (ACH) network, which processes electronic transactions between financial institutions. These transactions include things like payroll, online bill payments, and mortgage and loan payments. Currently, next day settlement is the quickest option for these kinds of payments.

“The objective of Same Day ACH is to increase the speed at which money moves between financial institutions,” said Jim Morrell, president and CEO of Peninsula Credit Union, who sits on the NACHA board.

Morrell said that faster money movement will benefit both credit unions and members. “The more quickly money moves between financial institutions,” he said, “the better we can serve our members with things like same-day payroll and expedited bill payments.”

The only payments not eligible for same-day settlement in the new plan are international transactions, and large transactions of more than $25,000.

The plan will be implemented in three phases, with the first phase becoming effective on September 23, 2016, the second phase on September 15, 2017 and the final phase on March 16, 2018.

Currently, there is a single daily window for ACH transactions. The plan calls for two new same-day windows to facilitate the clearing and settlement of payments on the same day.

Though financial institutions will be able to choose whether or not to send same-day payments, they will be required to receive same-day payments and post them to the appropriate accounts by 5 p.m. local time.

“It’s important to start planning for these changes early,” said Morrell. “Will the new system require a change in working hours for your staff who handle ACH transactions? Will it require any updates to your technology?”

Each same-day ACH transaction a financial institution receives will include a small fee paid by the originating institution of 5.2 cents to help cover any costs associated with receiving same-day ACH.

“The good news is, this is not something happening on a 60- or 90-day timetable,” said Morrell. He also mentioned that WesPay, the regional payments association covering the western United States, and on whose board Morrell also sits, will be holding workshops in Seattle and Vancouver this summer.

More information can be found at this Same Day ACH website created by NACHA.

Questions about this story? Contact James Pearson: 206.340.4790, jpearson@nwcua.org.

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