March 17, 2020

The Higher Dollar Limit for Same Day ACH is Here


Michael W. Kahn

Michael W. Kahn


The day on the calendar with the big circle around it is finally here. This Friday, March 20, 2020, the dollar amount allowable per Same Day ACH payment quadruples to $100,000.

As Nacha president and CEO Jane Larimer has said, “Same Day ACH is an important part of the modern ACH Network, and it is being embraced as the demand grows for faster payments.” And Larimer noted that the higher dollar limit “will make Same Day ACH even more attractive to consumers and to businesses of all sizes.”

There are many potential use cases for the $100,000 limit.

One avenue where Nacha forecasts sizeable growth is Same Day ACH for B2B transactions. While 91% of all ACH B2B payments currently qualify for Same Day ACH, Nacha estimates the new dollar limit will increase eligibility to 97%.

One B2B usage could be businesses asking that merchant funding for payment card transactions be directly deposited into their accounts using Same Day ACH. These payments can be higher than the previous $25,000 limit.

“For small and mid-sized businesses, getting the funding faster from the card payments they accept is very important for cash flow,” said Debbie Barr, Nacha Senior Director, ACH Network Rules Process & Communications. Money that comes in faster is money that can be more quickly used for expenses including bills and payroll.

The higher limit is also going to increase the number of reversals via Same Day ACH of erroneous forward transactions, which will be helpful to both Originating Depository Financial Institutions and their Originators.

Same Day ACH is big—moving 1 million payments a day with a daily total value of $1 billion in 2019. And as glad as we are to see the higher dollar limit finally arrive, make no mistake: Nacha is continuing enhancing Same Day ACH. The next calendar date to put a big circle around is March 19, 2021, when a third Same Day ACH window is added.

Visit Nacha’s Same Day ACH Resource Center for the latest guidance, news and other helpful information.