Results Emphasize End-User Support for Same Day ACH
HERNDON, Va., November 25, 2014 – As Nacha — The Electronic Payments Association® continues work to move the ACH Network from next-day settlement to same-day payment processing, results from an American Payroll Association survey show broad support for the benefits of Same Day ACH to their roles and organizations.
The survey, conducted during National Payroll Week in September, targeted 1,500 payroll professionals nationwide. More than 90 percent of respondents indicated that Same Day ACH would help them in meeting their payroll needs.
Specifically, respondents indicated that enhancing existing ACH next-day capabilities with the option of Same Day ACH would better support direct deposit functions (for hourly workers, temporary staff, and termination pay needs), contingency plans for missed deadlines, payroll error corrections, tax withholdings remittances, and remittances of garnishments. Additionally, 97 percent of respondents identified Same Day ACH as a service that would add value to their organizations, and more than 86 percent confirmed that same-day ACH capabilities would benefit their organizations beyond payroll functions.
“The results of the survey show that having the option of Same Day ACH can meet a number of unmet corporate payment needs, particularly as they relate to payroll,” said Janet O. Estep, president and CEO of Nacha. “The positive support for this capability confirms that our efforts will ultimately bring additional value to more employees who will benefit from the efficiency of delivering direct deposit of payroll via ACH.”
“APA members overwhelmingly support the concept of Same Day ACH settlements, which will allow businesses greater flexibility when making payments and correcting errors and to maintain compliance without reverting to paper checks,” said Dan Maddux, executive director of the American Payroll Association.
By year end, Nacha intends to move forward with formal rulemaking on the phased implementation approach for Same Day ACH by issuing a Request for Comment to the industry. The Same Day ACH phased-implementation plan would add new ACH Network functionality over time that will provide greater value to end users. In addition to the current early morning settlement, this functionality would include two new Same Day ACH clearing and settlement windows at mid-day and the end of the business day, and be available for virtually any ACH transaction.
Additionally, the phased implementation approach would provide faster funds availability, improving the efficiency of hourly payroll disbursements and last-day tax or bill payments. All of this would provide a solid foundation on which to build other innovative services.
“By moving forward with Same Day ACH, we can act now to provide important choices for consumers and businesses who want to efficiently move money more rapidly directly between bank accounts,” said Estep. “It can serve as an important step in meeting the needs of today and providing a building block for the innovations of tomorrow.”
Nacha will be providing details about its Same Day ACH initiative and how it complements other industry efforts to speed up payments during a webinar titled, Getting Up to Speed on Moving Payments Faster. The webinar, which takes place December 3, will feature Jane Larimer, Executive Vice President and General Counsel, Nacha, and Steve Ledford, Senior Vice President, Product and Strategy, The Clearing House, with Mike Herd, Senior Managing Director, ACH Network Rules and Enforcement, Nacha serving as moderator.
For more information about Nacha’s Same Day ACH initiative or the Getting Up to Speed on Moving Payments Faster webinar, visit www.nacha.org/same-day-ach.