Are you ready for “Same Day ACH”? Implementation of the first-phase of a new rule adopted by NACHA (National Automated Clearing House Association) that will provide for the faster movement of ACH payments, including same-day processing of most ACH payments, starts today.
All ACH receiving financial institutions must begin accepting same-day ACH credits and make the funds from those transactions available to depositors on the same day. It is anticipated that Same-Day ACH will be used for transactions like same-day payrolls, business-to-business payments, expedited bill payments, and account-to-account transfers. Same-Day ACH will not be available for international transactions and transactions in excess of $25,000, which represent only about one percent of ACH transaction volume. In order to take advantage of Same-Day ACH, instead of having settlement completed on the next business day, ACH Originators will have to pay a same-day fee for each Same-Day ACH transaction to allow the receiving financial institution to recoup its costs.
The first phase of the new rule, which is what is being implemented today, is limited to credit entries and non-monetary entries, with funds to be available at the end of the receiving financial institution’s processing day. The second phase, which will go into effect on September 15, 2017, will add debit entries. The third and final phase, which requires receiving financial institutions to make funds available by 5:00 p.m. their local time for all ACH transactions, becomes effective March 16, 2018. These new rules apply to any account that is able to receive ACH entries.
David Greene is a commercial litigation partner in Fox Rothschild’s West Palm Beach office. His practice focuses primarily on banking litigation, real estate litigation, title insurance litigation, and construction litigation. You can reach David at 561-804-4441 or firstname.lastname@example.org.