Same Day ACH Expansion to $1 Million Begins Today

One Million

HERNDON, Va., March 18, 2022 – Same Day ACH enters a new era today as the per payment limit increases to $1 million. 

“The growth of Same Day ACH in just over five years has been phenomenal as the payments community has welcomed this faster payment method,” said Jane Larimer, Nacha President and CEO. “Nacha has consistently heard requests to increase the dollar limit. Two years ago, it very successfully went to $100,000. Now, Nacha, the ACH Operators, and banks and credit unions across the country are meeting the need for a $1 million limit.”

The $1 million threshold is expected to create new use cases as well as expand existing uses for this faster payment method, including vendor and supplier payments for businesses, insurance claims, tax payments, and payroll funding.

ACH Network changes such as this are made and implemented in collaboration with the ACH Network’s two ACH Operators, the Federal Reserve and The Clearing House. This provides for seamless interoperability for the ACH Network. 

“The Federal Reserve is proud of the role we play in evolving and enhancing ACH as a payment option through delivery of FedACH® Services,” said Cheryl Venable, Executive Vice President and Chief of Payments Operations for Federal Reserve Financial Services. “The $1 million limit for Same Day ACH transactions is responsive to industry demand and an excellent example of how the ACH Network is evolving to meet market needs and support innovation.”

“The need for faster payments has never been more evident,” said Jason Carone, Senior Vice President of ACH Product Management, The Clearing House. “During the pandemic, businesses and consumers shifted to faster payment methods and that trend is continuing. Increasing the Same Day ACH transaction limit to $1 million is good for not only businesses and consumers, but for the entire economy.”

The higher per payment limit follows a year of remarkable growth for Same Day ACH, in which volume and value rose 74% and 105%, respectively, over 2020. More than 1.5 billion Same Day ACH payments have been made since inception in Sept. 2016. 

“The success of Same Day ACH and the enacting of the new $1 million limit is further proof that the modern ACH Network is helping meet America’s growing need for faster payments,” said Larimer. 

About Nacha
Nacha governs the thriving ACH Network, the payment system that drives safe, smart, and fast Direct Deposits and Direct Payments with the capability to reach all U.S. bank and credit union accounts. More than 29 billion ACH Network payments were made in 2021, valued at close to $73 trillion. Through problem-solving and consensus-building among diverse payment industry stakeholders, Nacha advances innovation and interoperability in the payments system. Nacha develops rules and standards, provides industry solutions, and delivers education, accreditation, and advisory services.

About Federal Reserve Financial Services
As the U.S. central bank, the Federal Reserve System provides payment services and seeks to foster the stability, integrity and efficiency of the nation’s monetary, financial and payment systems. In support of this mission, Federal Reserve Financial Services offer a comprehensive suite of payment and information services to financial institutions, including the FedNowSM Service for instant payments (coming in 2023), FedACH® Services suite for transactions through the ACH Network, the Fedwire® Funds Service for electronic funds transfers, the Fedwire Securities Service for processing securities transfers, Check Services for electronic and paper check processing, FedCash® Services for supplying currency and coin, the National Settlement Service for settlement of interbank obligations, and the FedLine® Solutions that allow direct access to these services. Visit FRBservices.org® for additional information.

About The Clearing House
The Clearing House operates U.S-based payments networks that clear and settle more than $2 trillion each day through wire, ACH, check image, and real-time payments. It is the nation’s most experienced payments company, with a long track record of providing secure and reliable systems, payments innovation, and strategic thought leadership to financial institutions. Most recently, The Clearing House has revolutionized U.S. payments infrastructure with the RTP® network, which supports the immediate clearing and settlement of payments, along with the ability to exchange related payment information across the same secure channel. These RTP capabilities enable all financial institutions to offer safer, faster, and smarter digital transaction services for their corporate and retail customers. Learn more at www.theclearinghouse.org.