The National Automated Clearing House Association, known as NACHA, has adopted a new policy effective September 2016 that will allow same-day processing of their ACH payments. This new rule will process payments much faster in a matter of hours, rather than the next business day. The originating financial institutions (ODFIs) would be able to submit payments either in the morning by 10:30am or afternoon by 2:45pm, and the payment would be settled no later than 1pm and 5pm, respectively, on the same day.
It’s important to note that this faster option does not replace the current ACH payment processing schedules. Instead, there will be a new ACH network functionality that will process these same-day payments. Fortunately, the new network with expedite almost all of the current types of ACH payment transactions, including both debits and credits. However, international transactions and amounts over $25,000 will not be eligible for this same-day processing, which only make up about 1% of the current ACH payments.
Although this new rule system will quicken the ACH payment process, there is a “Same Day Fee” involved. For each same day transaction, the ODFI is responsible to pay 5.2 cents per transaction in order for the RDFI to recover their costs of implementing this new transaction process in their institutions. In return, the RDFIs are responsible to actually receive these same day transactions in order for ODFIs to keep processing same day transactions to them.
This new rule will be carried out in these three phases that are listed below:
- Phase 1 – Begins September 23, 2016 – Same-day ACH credits only
- Phase 2 – Begins September 15, 2017 – Adds same-day ACH debit payments
- Phase 3 – Begins March 16, 2018 – Funds from same-day ACH credits must be available to customers by 5pm, RDFI local time