Same-Day Processing and Settlement of ACH Credit Transactions Launched for All U.S. Banks

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by Tatsiana Yablonskaya · 3 min read

The Electronic Payments Association has announced the first Phase of Same Day ACH, which means the beginning of a new era of faster payments in the U.S.

The Electronic Payments Association (NACHA), the trustee and rule maker of the ACH Network, is proud to announce the launch of Phase 1 of Same Day ACH. This faster payments option allows customers to send and receive payments and payment-related information on the same day through the ACH Network.

ACH is the electronic network developed to transfer money from one financial institution account to another through direct deposit and payments.

BusinessWire points to the importance of Phase 1 of Same Day ACH launch saying that it marks a significant milestone in the journey towards faster payments in the U.S. Being able to exchange virtually any ACH credit transactions, the option enables a wide range of transactions such as urgent claim payments from an insurance company to a consumer or same-day payroll payments from an employer to an hourly or contract employee.

“The launch of Same Day ACH marks a significant milestone in the journey towards faster payments in the U.S.,” said Janet O. Estep, president and CEO of NACHA. “While other payments initiatives have been developed to support the demand for faster payments in the U.S., Same Day ACH provides absolute certainty that your payment can get to absolutely anyone else with a bank account on the same day, regardless of which bank or credit union they use, bringing value to all users of the ACH Network.”

The launch of Phase 1 of Same Day ACH means that all financial institutions get a possibility to receive same-day transactions. NACHA expects that most of financial institutions will start using same-day transactions today although this function is optional. NACHA has conducted a research and found out that 95 percent of the U.S. leading financial institutions intend to originate Same Day ACH in 2016. The options that companies have stated as most important of Same Day ACH include payroll and business-to-business payments.

“Same Day ACH is an innovative and immediate solution to support the demands of those consumers and businesses that want to move their money faster,” said Estep. “Not only does it support the industry’s near-term needs, but it also serves as a building block for the future of faster payments. Upon the Same Day ACH foundation, other products and services can be built to continue to meet the evolving needs of consumers and businesses into the future.”

Phase 2 of Same Day ACH is scheduled for September 15, 2017. Phase 2 is expected to offer the faster processing and settlement of debit transactions, in addition to credit transactions. Besides, it will support additional use cases such as consumer bill payment for utility, insurance, telecom, mortgage, loan and credit card payments.

Since the very launch in 1974, NACHA has been managing the development, administration and rules for the ACH Network, which means for a total of 12,000 financial institutions in the U.S. Annually, financial institutions exchange 24 billion ACH payments valued at $41 trillion. NACHA allows the ACH Network to be one of the largest, safest, and most reliable systems in the world.