January 08, 2020

A Higher Dollar Limit for Same Day ACH Means a Huge Growth Opportunity for B2B


Michael W. Kahn

Michael W. Kahn


Editor’s Note: This is the first in a two-part series on an upcoming enhancement to Same Day ACH. On March 20, 2020, the dollar amount limit per payment increases from $25,000 to $100,000. Today we look at what Originators can do to prepare.

Same Day ACH for B2B is huge—and about to get even bigger. 

In the first three quarters of 2019 there were 36.8 million Same Day ACH payments used for B2B transactions, transferring $61 billion. Those numbers are up 49.8% and 47.1%, respectively, from the same time in 2018. 

Now that the per-payment dollar limit is quadrupling, “As an Originator, more of your B2B payments are going to be eligible for Same Day ACH,” said Debbie Barr, Nacha Senior Director, ACH Network Rules Process & Communications. In fact, Nacha estimates the change will make 97% of all ACH B2B payments eligible for Same Day ACH, up from 91% that are currently eligible.

One way that businesses could take advantage of this enhancement would be to request that merchant funding for payment card transactions be directly deposited into their accounts using Same Day ACH. These payments can be more than the existing $25,000 limit for Same Day ACH, and Barr said certain businesses should be particularly eager to embrace the increase. 

“For small and mid-sized businesses, getting the funding faster from the credit card payments they accept is very important for cash flow,” she explained. It will help with cash flow, because with money coming in faster—and in larger amounts—those funds can, in turn, be available to cover other expenses, such as payroll and bills.

Originators should also be ready to make faster large-dollar account-to-account transfers. Businesses often need to move money between their accounts within the same day and those debits and credits are often for amounts higher than $25,000.

This will be big for cash concentration and disbursement. 

And while account-to-account transfers are often thought of as being consumer-driven, Barr noticed something while speaking about Same Day ACH at a recent conference. 

“Most of the people in the session who put up their hand when I asked if they are using Same Day ACH said they are using it for cash concentration.”

For example, a business with offices across a state may have several local accounts where they make deposits, but at the end of the day wants to consolidate the funds into a master account. 

“And it works the other way, if they have a local office that needs funds in their account quickly,” noted Barr. 

Either way, with the higher dollar limit they’ll be able to do more of that. 

Finally, while the $100,000 limit will be attractive to many, it’s not mandatory to use. Each Originator can decide for itself what—if anything—it needs to do to prepare.

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

Read part two of the series here.