Nacha Board Chair: ‘We Never Stop’ Enhancing Same Day ACH


Michael W. Kahn

Michael W. Kahn


A big enhancement is coming next year for Same Day ACH, but changes to meet the needs of users are an ongoing process, the chairman of the Nacha Board of Directors told a recent conference of corporate treasury professionals.

“We never stop. We’re always looking at where do we go next,” said Joe Hussey, Managing Director, North America Payables & Receivables Product Executive, J.P. Morgan.

Same Day ACH continues to gain in adoption, particularly after the per transaction limit quadrupled to $100,000 in March of this year. Same Day ACH payment volume is up 41% in 2020, and the average amount of a payment is up 32%. Looking ahead, a third Same Day ACH processing window will be added in March 2021. 

Speaking at the AFP 2020 Virtual Experience, Hussey noted that Same Day ACH users have their wish lists, including an even higher dollar limit. 

“That’s something that’s always under review. I think all of us as large Originators, from a banking perspective, are looking at this closely, watching it as it continues to evolve,” said Hussey. 

Also on the list: The ability to post on Saturday morning without requiring a settlement. 

“We’re looking at this closely. I think this has a lot of value across the Network today,” said Hussey.

During the Oct. 27 session on “The Modern ACH Network Emboldens Your Payments Strategy,” Jane Larimer, Nacha President and CEO, said the pandemic “is definitely a catalyst” for businesses to stop using paper checks.

“One of the things that we are seeing through COVID is check conversion payments—those were already on a very steep trajectory down last year—now we’re seeing them decline by 24%” in both the second and third quarters of 2020, said Larimer. 

At the same time, internet transactions are maintaining a steady climb, up 15.8% in the second quarter of this year and 13.8% in the third quarter. Hussey said that “the difference in this from what we saw in some of the check conversion codes before is this is highly sustainable.” 

Larimer said the ACH Network remains on track to post solid gains this year, despite the pandemic. 

“Our forecast for 2020 will be about 26.6 billion payments, almost two billion more payments than last year,” said Larimer, noting that annual gains of more than one billion payments ACH payments have been the norm since 2015.