The ACH Network Marks the Successful Expansion of Same Day ACH

Same Day ACH

Nacha, The Clearing House and The Federal Reserve—collectively comprising the infrastructure of the ACH Network—announce the successful expansion of Same Day ACH.

On March 19, 2021, the operating hours of Same Day ACH were extended through the establishment of a third daily opportunity to clear and settle Same Day ACH payments. Now, Same Day ACH payments can be submitted by financial institutions to their ACH Operator until 4:45 p.m. ET, with settlement of funds occurring at 6 p.m. ET. With this expansion, the ACH Network now settles payments four times each business day.

“Same Day ACH is a cornerstone of the modern ACH Network,” said Jane Larimer, Nacha President and CEO. “The expansion of Same Day ACH is a textbook example of collaboration among the organizations that make up the ACH Network.”

Same Day ACH has grown tremendously since its introduction in September 2016. In 2020 nearly 350 million Same Day ACH payments were made; and more than 850 million Same Day ACH payments have been made since its inception.

“The Federal Reserve Banks, as an ACH operator, remain committed to the continued advancement of the ACH Network and we are proud to have worked with the payments industry to extend Same Day ACH processing with a third, later window,” said Cheryl Venable, EVP and product manager of the Retail Payments Office of the Federal Reserve System. “We look forward to the benefits that the expansion of Same Day ACH will bring, particularly to consumers who value and rely on ACH but are seeking ways to expedite payments. The recent modernization of our FedACH® platform will enable us to bring these and additional future benefits to the payments industry in a timely and efficient manner.”

“Extending the operating hours of Same Day ACH gives all financial institutions, especially West Coast banks, the opportunity to use the same day functionality through more of the business day,” said Dave Fortney, Executive Vice President, Product Development and Management at The Clearing House. “The additional operating hours for Same Day ACH are important in this era of faster payments, as customers expect to have the ability to send same-day payments later in the day.”

The extension of Same Day ACH is expected to benefit organizations and consumers for uses such as payroll, bill payments, vendor payments, and account transfers.

One key to enabling the third Same Day ACH window was the Federal Reserve’s extension of operating hours for the National Settlement Service (NSS), by one hour to 6:30 p.m. ET. NSS is used by The Clearing House to settle ACH payments.