From Same Day ACH Enhancement to the Return of Payments, a Busy 2022 is Ahead
Every year has its unknowns, but the last two years have provided more twists and turns than we really needed. Nevertheless, with 2022 still in its relatively early days, many of us are hoping to get back on at least something resembling a pre-pandemic normalcy. It certainly goes for us at Nacha, as we look forward to several things on our calendar.
First up is the imminent increase in the Same Day ACH dollar limit to $1 million per payment on March 18, 2022. It’s going to open new use cases for Same Day ACH.
Same Day ACH is already red hot, as prior enhancements—including last year’s extension of operating hours—have led to greater adoption. Volume soared almost 74% in 2021, as value jumped 105%.
When you combine a higher Same Day ACH limit with B2B payments you have the perfect match. Some of the Same Day ACH B2B use case examples include cash concentration and account-to-account transfers, and payments with vendors and suppliers. There’s also funding of payroll, as well as tax payments, and merchant funding for payment card transactions. B2B payments using Same Day ACH more than doubled in 2021, and this year’s enhancement should further fuel adoption.
Nacha also is conducting market research on Same Day ACH. Nacha and the Payments Associations are fielding a Same Day ACH survey to better understand the current and potential futures of Same Day ACH.
Nacha is also working with a research firm to conduct in-depth interviews with Same Day ACH users and non-users. Our overarching goal is to learn more about who is, and isn’t, using Same Day ACH, and why. The research results will be revealed by Amy Smith of The Clearing House Payments Authority and Michael Herd, Nacha Senior Vice President, ACH Network Administration, at this year’s Smarter Faster Payments 2022 conference.
An enhancement has been made to Nacha’s Risk Management Portal to streamline and standardize the exchange of Letters of Indemnity. In this secure service, an Originating Depository Financial Institution generates the LOI through a secure document handling service that then alerts the RDFI of its availability. This enhancement will cut the administrative time and effort required for this task.
Also on the risk management front, three other Nacha rules go into effect later this year:
- June 30, expanding the coverage of the Data Security Rule.
- Sept. 16, the first phase of the Rule to define and standardize the use of Micro-Entries for account validation.
- Sept. 30, addressing the roles and responsibilities of Third-Party Senders, including “nested” TPS arrangements.
Something else we’re excited about at Nacha is the return of the in-person version of Smarter Faster Payments 2022, May 1-4 in Nashville, Tennessee. Our team is hard at work, putting together everything you expect from Payments: the best in education, an exciting exhibit hall, dynamic keynoters, and many opportunities to network—something we know is particularly important given the long time away. With some 130 sessions across nine education tracks, covering everything from ACH to cybersecurity to faster payments and more, we know you’ll find Payments a worthwhile experience that will bolster your knowledge and your network.
If you can’t travel, no problem. Payments Remote Connect is back May 23-25, offering the Payments experience on your screen. Unsure whether to pack a bag or stay put? Nacha’s Risk-Free Program Exchange Policy allows you to change from one event to the other without penalty. You’ll receive either a refund or an invoice for the difference in registration fees, as applicable.
We’re also looking forward to the Payments Institute and hope you’ll join us for TPI On Campus in Alexandria, Virginia, June 26-29, or for TPI Home School Sept. 12-14.
There’s a busy 2022 shaping up at Nacha and we look forward to you being part of it.
On Nacha.org you’ll find detailed information on all 2022 upcoming Nacha Operating Rules, as well as Smarter Faster Payments 2022, Payments Remote Connect, and the Payments Institute.