NACHA President and CEO Janet O. Estep discusses the lowdown on Same Day ACH and faster payments.
This Frequently Asked Questions (FAQ) document provides answers to common questions regarding the Same Day ACH Rule.
What are the major provisions of Same Day ACH?
The Rule will enable the option for same-day ACH payments through new ACH Network functionality, without affecting existing ACH schedules and capabilities: Originating financial institutions (ODFIs) would be able to submit files of same-day ACH payments through two new clearing windows provided by the ACH Operators :
It is vital that Receiving Depository Financial Institution (RDFIs) and Originating Depository Financial Institution (ODFIs) examine their current operations and understand how Same Day ACH implementation is going to affect their organization from an operational standpoint.
This NACHA video shows how Same Day ACH could enhance various payment applications from bill pay to emergency payroll adjustments.
The limit on large-dollar transactions (those ACH Entries over $25,000) applies to individual transactions; i.e., a single Same-Day ACH transaction could not be for more than $25,000. There is no similar limit on the aggregate value of a batch of Same-Day ACH transactions. Entries submitted in a same-day processing window that are over $25,000 will not be rejected by the ACH Operator, but will be processed for next-day settlement in the next available processing window.
During Phases 1 and 2 of Same-Day ACH (September 23, 2016 through March 15, 2018), an RDFI is required to make funds available from a Same-Day ACH credit in its customer’s account no later than the end of processing of transactions for that settlement date. While funds do not need to be available for cash withdrawal at that time (e.g., via an ATM), they must be available to satisfy other subsequent debit entries against the account (e.g., to pay ACH debits and checks). This Guidance provides examples for meeting this requirement.
Kathleen Romano, executive director responsible for payments and bill printing at Verizon, discusses the benefits of Same Day ACH for billing.
Stacy Nascimento, AAP, vice president and product manager, treasury and payment solutions, at Webster Bank describes how Same Day ACH can enable peer-to-peer (P2P) payments.
Commentary: Same Day ACH - Bringing New Solutions to One Person at a Time