Same day ACH transactions will get faster, per-transaction limits will triple, and processing windows will expanding, according to three new rules announced by The Electronic Payment Association, NACHA.
Nearly 41 million same day ACH transactions have flowed through the ACH Network, according to NACHA. Realizing that consumers are embracing same day ACH, NACHA, which manages and governs the ACH Network, continues to expand its capabilities with these new rules:
- The speed of funds availability for certain Same Day ACH and next-day ACH credits goes into effect on Sept. 20, 2019.
- Starting on Sept. 18, 2020, same day ACH transactions can be submitted to the ACH Network, which is the foundation for the electronic movement of money and data in the United States, by two hours each business day.
- Effective March 20, 2020, NACHA allows the per-transaction dollar limit to balloon from $25,000 to $100,000, effective March 20, 2020.
More About Increases in the Speed of ACH Funds Availability
Under NACHA’S new rules, the speed of funds availability will increase for certain same day ACH and next-day ACH credits.
According to the changes, funds from same day ACH credits processed in the existing, first processing window will be made available by 1:30 p.m. ET. 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 Receiving Depository Financial Institution (RDFI), which interlinks the receiver’s account with the Cards Association network, by 5:00 p.m. on the previous day.
This new rule was implemented to fulfill merchant and consumer demands for quicker settlement and access of funds.
More About Higher Transaction Limits for ACH Transactions
NACHA created the new rule for boosting the per-transaction dollar limits because, for example, it would enable B2B and claim payments, and reversals for a larger pool of transactions. Currently, only about 89 percent of transactions are eligible for same-day ACH processing. The association also found same-day ACH to be beneficial for claim payments due to them having a history of being larger, time-sensitive amounts.
More About the Expanded Processing Window
NACHA created a third same day ACH processing window, expanding availability by two hours. Currently, the latest that an Originating Depository Financial Institution (ODFI), which acts as the interface between the ACH network and the transaction’s originator, can submit same day ACH transactions to an ACH operator is 2:45 p.m. ET. or 11:45 a.m. P.T. Under the new rule, transactions may be submitted until 4:45 p.m. ET or 1:45 p.m. PT. Interbank entries made in the third processing window would be settled at 6:00 p.m. ET, according to NACHA.
By implementing this rule, NACHA aims to providing to balance the desire to expand access to same day ACH while minimizing impacts on financial institutions’ end-of-day operations and their next days’ re-openings.
In Conclusion
Expanding same day ACH processing makes safe, secure, almost real-time payments a reality for financial institutions and customers. People will continue to demand that they get their money quicker. NACHA has listened and created a blueprint to satisfy customers’ demands and preferences.
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