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The Future of Faster Payments: NACHA’S Same Day ACH Agreement

Getting ready to take advantage of Same Day ACH payments? Here’s what you need to know:

The future of Same Day Automated Clearing House (ACH)  payments is almost here. Starting September 23, 2016, NACHA will be providing an omnipresent same-day clearing and settlement capacity for practically all ACH transactions to reduce bank fees. This will be a phased implementation that financial institutions will take to renovate the payment. “This instantaneous action enables us to introduce new capabilities more quickly, and then continue to build over time, creating value for all participants at each step along the way,” said Janet O. Estep, president and Chief Executive Officer of NACHA.

ACH electronic payments

Same Day ACH for business-to-business payments will be carried out in three-phases: credit transactions, followed by debit, and the introduction of faster credit refunds. These processes will help progress service levels over the entire ACH platform. Same Day ACH will mean that transactions of under $25,000 can be issued the same day, eliminating the need for costly wire transfers for domestic payments that fall under the cap. Since money transferred electronically passes through fewer hands than a paper check, businesses can move forward in Same Day ACH transactions while ensuring their safety and confidentiality.

A study is being launched by NACHA upon arrival of the Same Day ACH plan to review the industry’s costs and projected transaction volume. “NACHA has conducted extensive work over the past year to outline the parameters and requirements of a ubiquitous, same-day capability for the ACH Network that enables financial institutions, large and small, to provide value to their end-users,” said Estep.

In preparation for Same Day ACH, NACHA has proposed a Same Day ACH checklist that outlines the steps to prepare for their phased implantation approach which can be viewed at NACHA under Checklist's for Implementation. Using the NACHA Same Day ACH checklist, our OnPay Solutions team will aid you in developing a strategy, reviewing current ACH operational procedures and identifying changes needed, and creating action-oriented implementation time frames.

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