Same Day ACH is Now Live!

The Automated Clearing House (ACH) has become the first electronic network of transactions to offer ubiquitous faster ACH payment processing via banks and credit unions. September 23rd 2016 marked the launch of Same Day ACH, unveiling 2 new settlement windows to make it possible for consumers, including businesses, to receive same day credit for transactions in their name. As a result, all US banks within the country will/may allow for same-day capability.

Morning submission deadline: 10:30 AM ET, with settlement occurring at 1:00 PM.
Afternoon submission deadline: 3:00 PM ET, with settlement occurring at 5:00 PM.

The latest development is part of multi-phased efforts toward enabling faster, more flexible transactions between consumers and businesses. By Sept. 15, 2017, Same Day ACH Phase Two should accomplish its agenda of allowing advance scheduling of debit payments.

But now the question arises; If debits can be scheduled and anticipated in advance by consumers and businesses, what is the need for faster movement?

Same Day Debit

As far as scheduled debit payments are concerned, it must be understood that same-day debits cannot be debited before being scheduled. For example, you pay off a recurring debit in the form of a utility bill every 15th of each month. However, if you need to debit a one-time payment from your account in advance, you will have to wait for it.

On the contrary, if you want to make an online payment transaction the same day, you can depend on same-day debits. This gives you the choice to make pre-payment for recurring debit. This is great for utility payments when a payment is needed the same day to stop a cut in utilities.

However, there are many risk benefits associated with same-day debits, as returns can be received quickly.

Same day ACH debit initiative provides great value to businesses, knowing they the bulk of bill payments have been credited to their accounts.
Another benefit comes in the form of improved user interfaces, which makes it easier and intuitive for businesses to give users a timeline to make a payment and ask them when they would want to schedule the same.

However, consumers and businesses would have to wait until September 15th 2017 for same-day debit transactions. Preparations are already under way to add debits to ACH while same-day ACH is already live.

There is less than a year before the financial institutions will be ready for same day collection of payments, bill payments, and check conversions.

Contact Us for more information on Credit Card Processing, or eChecks and ACH Transactions. Or take us up on our FREE Merchant Account Analysis offer. We’ll analyze your merchant account rates and let you know how to Save! If you are ready, you may be able to Switch and Save!

Same Day ACH is Now Live!