Same Day ACH Rolling Out in Phases Starting 2016


Same Day ACH Rolling Out in Phases in 2016, 2017, and 2018


At the moment, most ACH (Automated Clearing House) payments are settled on the next business day. There are many scenarios where businesses and consumers could benefit from same day ACH processing.

A rule change from NACHA (The Electronic Payments Association) has enabled ACH Originators to send same day ACH transactions to accounts at any Receiving Depository Financial Institution (RDFI). It will build upon the existing, next day ACH Network platform and establish a new option for same-day clearing and settlement via ACH.

This new ruling also requires all Receiving Depository Financial Institutions (RDFIs) receive same-day transactions and provide faster same day funds availability to its customers. The value created for end users will extend the ability of consumers and businesses to quickly pay bills and receive funds faster. In other words, get paid faster and do more business!

RelatedMerchants Can Reduce Payment Processing Costs by Using eChecks (ACH)


International transactions (IATs) will not have a same day ACH option as there are compliance issues involved in international transactions. Additionally, high value transactions over $25,000 will also not be able to be transferred on the same day. Still, the remainder of transactions accounts for about 99% of all transaction volume.


Two new settlement windows.

Where there was only one settlement process daily, with the new rule, two new same day settlement windows will be added. This increases the movement of funds between financial institutions from once a day to three times a day.

  • 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.


When will Same Day ACH roll out?

The decision to implement same day payments in three phases in 2016, 2017, and 2018, will give time to financial institutions to acclimate to the quicker processing format. With faster fund availability, more options would open up for businesses and consumers.


Phase 1 of Same Day ACH

With Phase 1 scheduled to begin September 23, 2016, the focus will be on processing same day ACH credits, involving person-to-person payments, hourly payroll payment, and expedited bill payments. Under this phase, the two new same day processing windows will be used. That will spread the total volume throughout the day and accelerate the movement of funds, and reducing strain on resources.

As per the same day ACH rule, morning and afternoon settlements will be settled and funds will be available with the receiver’s Receiving Depository Financial Institution (RDFI) at the end of the payment day.


Phase 2 of Same Day ACH

Scheduled to begin on September 15, 2017, Phase 2 will introduce same day ACH Debits, structured similar to the same day credit payments in Phase 1, with a focus on consumer bill payments.


Phase 3 of Same Day ACH

Set to begin on March 16, 2018, Phase 3 will introduce quicker ACH Credit fund availability, requiring RDFIs to make funds available for same day credit entries at 1700 hours local time.


The effective dates above are contingent on receiving written confirmation from the Federal Reserve to support the rule.


Will there be any extra charges for Same Day ACH?

The new rule includes a “Same Day Fee” on each Same Day ACH transaction so that RDFIs could recover, all or a part of, their costs for enabling and supporting Same Day ACH. The message here is that if bank customers want it and pay for it, they can have it on the same day!


How will same day ACH impact business?

Faster payment processing and fund availability will benefit everyone involved. For vendors who bill on hourly services, their payment can get credited the same day and they are able to provide more services to their customers immediately instead of waiting 2 or 3 days for a payment to clear.

When online retailers are able to receive payment on the same day that payment transactions are made, customers can expect quicker processing and shipping of their orders. This also means that if you have returned a product, your funds credits move faster and you can buy your product elsewhere faster.

Same day ACH check collection promises lowered risk of non-sufficient funds (NSF) returns for merchants. If the funds are credited (or moved) on the same day a check is banked in, there is a very high chance of not having NSF checks.

Will there be any problems for same day ACH?

Smaller banks or credit unions may face some problems as they may not be equipped with the technical capacity for faster payment processing.

However, the initiative offers greater functionality for Originating Depository Financial Institutions (ODFIs), which can now develop same-day ACH products and offerings on the lines of the new functionality. NACHA predicts a higher return on investment and great positive margins for these institutions.

There is also concern over the compliance of NACHA’s new rules with changes under consideration in the Federal Reserve. The Fed also wants faster payments and is still working on identifying potential approaches of faster payments. Unlike NACHA, the Fed is focused only on person-to-person, business-to-person, and business-to-business payments.

All in all, the move toward modernizing the payment processing system promises to offer an exciting opportunity for everyone involved, businesses and consumers. When money moves fast, more business gets done!


Contact Us for more information on 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!


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