ODFIs Should Talk to Customers Now About the Higher Same Day ACH Dollar Limit


Michael W. Kahn

Michael W. Kahn


Editor’s Note: This is the second 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 Originating Depository Financial Institutions (ODFIs) can do to prepare.

Ask not what your customer can do for you. Ask what Same Day ACH can do for your customer.

That’s the advice to ODFIs ahead of the next Same Day ACH enhancement which becomes effective on March 20.

“ODFIs can talk to their customers about use cases for higher-dollar Same Day ACH payments,” said Debbie Barr, Nacha Senior Director, ACH Network Rules Process & Communications. 

There are many ways those customers—small, medium and large—will benefit from the quadrupling of the per-transaction limit. Just a few examples include payroll payments and payroll funding debits; business-to-business payments; claims and disaster assistance payments; account-to-account transfers; and merchant funding from card settlements. 

By the same token, ODFIs should be prepared for customers who have heard about the upcoming change and bring up the higher limit with their relationship managers. You’ll need to determine how best it can work. 

“It’s an additional service that an ODFI can offer, so they may want to review their existing controls. It may not be something they offer to every customer,” said Barr. 

ODFIs should also be sure clients know the schedules for originating Same Day ACH transactions to take full advantage of the opportunities. 

Another key use for ODFIs could be payroll deposits and funding. As Barr noted, “For some, being able to collect the funds to cover payroll payments as a same-day payment will be a big deal.” 

ODFIs also should look into Same Day ACH for reversals to help fix problems for their Originators and for themselves. With the $100,000 limit, a greater percentage of forward erroneous transactions could be successfully reversed using the Same Day ACH capabilities. 

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

Read part one of the series here.