Faster, Higher Pay Limit, Same Day ACH Transactions Coming

Nov 26, 2018

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.

If you are looking for a trusted ACH processor, then consider eMerchantBroker.com (EMB). EMB works with businesses of all sizes and credit histories, and it specializes in businesses labeled as “high risk.

It offers a simple online application process, and most applicants get approved quickly. Why not take advantage of giving your customers quicker, safer, and efficient transaction processing? Start your application to begin the process.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

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A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

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