Nacha News

Nacha creates broadly adopted payment and financial messaging rules and standards through consensus-led governance, international collaboration, and innovative development practices. We continually advance the ubiquitous ACH Network and engage diverse stakeholders to accelerate a digital future of global financial services interoperability.

Pay on Payday: Direct Deposit is Money in the Bank

How many times have you heard some version of “never take anything for granted”? Sometimes in this modern, digital age we forget about all the conveniences afforded us by advancements in technology, and we ignore that things haven’t always been done the way they are now.

With real-time payments systems being built, real-time has been the topic du jour lately as it relates to paychecks. But it’s important to remember that thanks to Direct Deposit through the ACH Network, 93% of American workers can already count on their hard-earned dollars being accessible in their bank accounts every single payday morning.

Because of Direct Deposit, the days of paper checks are rapidly becoming a thing of the past, and Direct Deposit has made safe, reliable, fast payments the norm. Direct Deposit is free for American workers. And cashing or depositing a physical check can take days to process, versus Direct Deposit that ensures your money is available at the start of business every payday. That’s why 95% of people paid by Direct Deposit say they’re very satisfied with it.

When you check your bank account heading into this Labor Day weekend, it’s Direct Deposit that helped put the money you worked for where you need it. Every American using Direct Deposit with an Aug. 30 payday will have their money available to them at the opening of business on Friday. They don’t have to stress about being able to cover bills over a long weekend.

That’s not to say that the ACH Network isn’t continuing to add enhancements and make improvements. Currently, Same Day ACH allows for money to be available the day transactions occur. And Nacha is making enhancements that will add capabilities. In March 2020, the dollar transaction limit will increase to $100,000 per transaction. And since ACH payments can only settle when the Fed’s National Settlement Service is open, Nacha has asked the Fed to extend its operating hours by one hour to 6:30 p.m. ET, giving users the opportunity to make payments later. These changes will go a long way to make a fast, reliable, secure payment system even faster.

The continuous improvements to the modern ACH Network ensure that Direct Deposit is a trusted, convenient, fast payment platform that benefits the vast majority of Americans. This Labor Day weekend, enjoy spending time with your family and friends, knowing that you can depend on your money being there for you.