EXPANDING SAME DAY ACH

Three new rules have been approved to expand the capabilities of Same Day ACH for all financial institutions and their customers. The first expands access to Same Day ACH by allowing Same Day ACH transactions to be submitted to the ACH Network for an additional two hours every business day. The second increases the Same Day ACH per-transaction dollar limit to $100,000. The third increases the speed of funds availability for certain Same Day ACH and next-day ACH credits.

The three new rules have different effective dates. The faster funds availability rule will become effective on Sept. 20, 2019; the increase in the per-transaction dollar limit will become effective on March 20, 2020; and the new Same Day ACH processing window with expanded hours will go into effect on Sept. 18, 2020.

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Detailed Information

Expanding Access to Same Day ACH

Creates a third Same Day ACH processing window that expands Same Day ACH availability by 2 hours

  • Currently, the latest that an ODFI can submit files of Same Day ACH transactions to an ACH Operator is 2:45 p.m. ET (11:45 a.m. PT)
  • The new window will allow Same Day ACH files to be submitted until 4:45 p.m. ET (1:45 p.m. PT), providing greater access for all ODFIs and their customers
  • The timing of this new processing window is intended to balance the desire to expand access to Same Day ACH through extended hours with the need to minimize impacts on financial institutions’ end-of-day operations and the re-opening of the next banking day

 

Increasing the Same Day ACH Dollar Limit

Increases the per-transaction dollar limit for Same Day ACH transactions to $100,000

  • Currently, Same Day ACH transactions are limited to $25,000 per transaction
  • While the current limit covers approximately 98% of ACH transactions, there are many use cases for which a higher dollar limit will better enable end users to utilize Same Day ACH.  For example, a higher transaction limit would better enable:
    • B2B payments, in which only approximately 89% of transactions are currently eligible
    • Claim payments, which are often for larger dollar amounts and are time sensitive in nature
    • Reversals for a larger pool of transactions, including all Same Day ACH transactions

 

Providing Faster Funds Availability

Establishes additional funds availability standards for ACH credits

  • Funds from Same Day ACH credits processed in the existing, first processing window will be made available by 1:30 p.m. RDFI's local time.
  • Funds from non-Same Day ACH credits will be available by 9:00 a.m. on the Settlement Date, if the credits were available to the RDFI by 5:00 p.m. on the previous day (i.e., apply the existing “PPD rule” to all ACH credits)

The precise timing of ACH file processing schedules, including this new third Same Day ACH processing window, are not set in the Rules, but instead are determined by each ACH Operator. 

 

Expanding Access to Same Day ACH
(Effective September 18, 2020)

The following changes to technical language represent modifications to the NACHA Operating Rules:

  • Article Three, Subsection 3.3.1.1 General Rule for Availability of Credits: To address funds availability requirements for credit Same Day Entries received in the third same-day processing window
  • Appendix Three, Glossary of Data Elements, Company Descriptive Date: To include the optional indicator for Same Day ACH entries that the Originator desires to settle in the third window.

Increasing the Same Day ACH Dollar Limit
(Effective March 20, 2020)

The following changes to technical language represent modifications to the NACHA Operating Rules to adjust the per-transaction dollar limit to $100,000 for Same Day ACH entries:

  • Article Eight, Definitions of Terms, Section 8.99 Same Day Entry
  • Appendix Three, Glossary of Data Elements, Settlement Date
  • Appendix Ten, Rules Enforcement, Subpart 10.4.6 ACH Rules Enforcement Panel

Providing Faster Funds Availability
(Effective September 20, 2019)

The following changes to technical language represent modifications to the NACHA Operating Rules:

 

  • Article Three, Subsection 3.3.1 General Rule for Availability of Credit Entries to Receivers
  • Article Three, Subsection 3.3.1.1 Availability of Credits that are Not Same Day Entries
  • Article Three, Subsection 3.3.1.2 Availability of Credits that are Same Day Entries

Effective Dates

  • Provide Faster Funds Availability – September 20, 2019
  • Increase the Per-Transaction Dollar Limit – March 20, 2020
  • Create a New Same Day ACH Processing Window – September 18, 2020
    • Final implementation of the new Same Day ACH processing window is contingent upon receiving timely notification from the Federal Reserve Board of Governors of changes to Federal Reserve services necessary to support it
      • The Federal Reserve process likely includes a public comment period on changes to the Federal Reserve’s National Settlement Service for interbank settlement and to Fedwire Funds
      • If approval is received by June 30, 2019, then the effective date of the new SDA window would remain as balloted – September 18, 2020
      • If approval is received between July 1 and December 31, 2019, then the effective date would be extended by 6 months to March 19, 2021

Expanding Access to Same Day ACH

Q. What are the components of the Expanding Access to Same Day ACH Rule?
A.This Rule creates a third Same Day ACH processing window that expands access to Same Day ACH for all financial institutions by 2 hours.

Currently, the latest that an ODFI can submit files of Same Day ACH transactions to an ACH Operator is 2:45 p.m. ET (11:45 a.m. PT). The new window allows Same Day ACH files to be submitted until 4:45 p.m. ET (1:45 p.m. PT), providing greater access for all ODFIs and their customers by 2 hours.

Q. At what time would entries in the third same Day ACH window be settled?
A. Interbank settlement for these entries would occur at 6:00 pm ET.

Q. When would funds from credits received in the third window be required to be made available?
A. An RDFI will be required to make funds available for Same Day ACH credits in this new Same Day ACH processing window no later than the end of its processing day. This uses the same end-of-day requirement as did Phases 1 and 2. An RDFI could decide to make funds available sooner than the deadline.

Q. Would Same Day ACH entries in the third window be identified differently?
A. Same Day ACH transactions in this third Same Day ACH processing window will be identified in the same way as with the existing windows – by including a “today’s date” in the Effective Entry Date field, and submitting the transaction timely to the ACH Operator.

Q. Is there a different optional settlement time indicator?
A. ODFIs and Originators optionally may use the convention “SD1800” in the Company Descriptive Date field for transactions in this new Same Day ACH window.

Q. Would eligibility be different in the third window?
A. All credits and debits, and all returns, will be eligible to be processed in the new Same Day ACH window, except international ACH transactions (IATs) and forward transactions over the per-transaction dollar limit.

Q. Will returns and NOCs be eligible in the third window?
A. All returns (and Notifications of Change) will be eligible for processing through the third Same Day ACH processing window.

Q. Will today’s “returns only” window be impacted?
A. The existing “returns-only” window provided by the ACH Operators will be absorbed into the new Same Day ACH processing window. This will enable RDFIs to send returns later into the day, up to 4:45 p.m. ET / 1:45 p.m. PT. It will also create a greater ability for RDFIs to make use of Same Day ACH processing for returns, which would get settled 14.5 hours earlier than next-day returns.

 

Increasing the Same Day ACH Dollar Limit

Q. What are the components of the Increasing the Same Day ACH Dollar Limit Rule?
A. This Rule increases the per-transaction dollar limit for Same Day ACH transactions to $100,000. Currently, Same Day ACH transactions are limited to $25,000 per transaction. While the current limit covers approximately 98% of ACH transactions, there are many use cases for which a higher dollar limit would better enable end users to utilize Same Day ACH. 

Q. What additional uses could be supported by the higher dollar limit?
A. The higher transaction limit will better enable:

  • B2B payments, in which only approximately 89% of transactions are currently eligible
  • Claim payments, which are often for larger dollar amounts and are time sensitive in nature
  • Reversals for a larger pool of transactions, including all Same Day ACH transactions

 

Providing Faster Funds Availability

Q. What are the components of the Providing Faster Funds Availability Rule?
A. This Rule establishes additional funds availability standards for ACH credits:

  • Funds from Same Day ACH credits processed in the existing, first processing window will be made available by 1:30 p.m. in the RDFI’s local time
  • Funds from non-Same Day ACH credits will be available by 9:00 a.m. RDFI’s local time on Settlement Date, if the credits were available to the RDFI by 5:00 p.m. local time on the previous day (i.e., apply the existing “PPD rule” to all ACH credits)

Q. When would funds from non- Same Day Credits be required to be made available?
A. 
Funds from non-Same Day ACH credits will be available for withdrawal by 9:00 a.m. RDFI’s local time on Settlement Date, if the credits were available to the RDFI by 5:00 p.m. local time on the previous day (i.e., apply the existing “PPD rule” to all ACH credits). For those non-Same Day ACH credits made available to the RDFI after 5:00 p.m. local time on the previous day, funds must be made available for withdrawal no later than the end of the Settlement Date.

Q. When would funds from Same Day Credits be required to be made available?
A. Funds from Same Day ACH credits processed in the existing, first processing window will be made available by 1:30 p.m. in the RDFI’s local time.

Funds from Same Day ACH credits processed in the existing, second processing window will continue to be made available by 5:00 p.m. in the RDFI’s local time.

Q. Are there any accommodations for other time zones?
A. An RDFI whose local time is Atlantic Time may use Eastern Time to satisfy these requirements.

An RDFI located east of the Atlantic Time Zone and west of the International Date Line must make the amount of a credit Same Day Entry received in any same-day processing window available to the Receiver for withdrawal no later than 9:00 a.m. (RDFI’s local time) on the Banking Day following the Settlement Date of the Entry.

 

General Questions

Q. What are the Effective Dates?

  • Provide Faster Funds Availability – September 20, 2019
  • Increase the Same Day ACH Dollar Limit – March 20, 2020
  • Expand Access to Same Day ACH with a New Processing Window – September 18, 2020
    • Final implementation of the new Same Day ACH processing window is contingent upon receiving timely notification from the Federal Reserve Board of Governors of changes to Federal Reserve services necessary to support it
      • The Federal Reserve process will likely include a public comment period on changes to the Federal Reserve’s National Settlement Service for interbank settlement and to Fedwire Funds Service
      • If approval is received by June 30, 2019, then the effective date of the new Same Day ACH window would remain as approved – September 18, 2020
      • If approval is received between July 1 and December 31, 2019, then the effective date would be extended by 6 months to March 19, 2021

Two hundred twelve parties responded to the Request for Comment. Feedback received demonstrated industry support for expanding the capabilities of Same Day ACH.

  • ACH end-users unanimously said they want expanded hours and higher dollar limits
  • A significant majority of financial institutions supported a third processing window

The Rule includes several changes from the original proposal. The changes were made based on input from the industry.

  • The timing of the new third Same Day ACH processing window has been shifted a half-hour earlier to minimize the impact to financial institutions’ end-of-day operations and the re-opening of the next banking day
    • Some financial institutions responded to the RFC stating that 2 hours are needed between the close of a banking day, and the re-opening of the next banking day at 9:00 p.m. ET (6:00 p.m. PT) when Fedwire re-opens
    • The timing of the proposed new window allows for the closing of Fedwire by 7:00 p.m. ET (4:00 p.m. PT), thereby allowing the 2 hours desired
  • The effective date for the new third processing window has been changed to September 18, 2020.  This is the date that can be supported operationally by the Federal Reserve ACH Operator; and many other RFC respondents requested additional implementation time
  • The funds availability requirement for the existing first Same Day ACH processing window has been changed from 1:00 p.m. to 1:30 p.m., as some RDFIs said a little additional time would be necessary to make this possible
  • The effective date for the funds availability requirements is September 20, 2019, which provides RDFIs approximately one year to implement
  • An additional proposal in the RFC to require funds availability for other non-Same Day ACH credits by 1:00 p.m. was not pursued
  • There are no changes to the proposal to increase the per-transaction dollar limit