The Federal Reserve and NACHA (National Automated Clearing House Association) have adopted a rule to provide a new capability for moving electronic payments including credits and debits to your account. This rule referred to as Same Day ACH will be rolled out in 3 Phases
What is ACH?
ACH (Automated Clearing House) also known as pre-authorized debits or ACH payments is a convenient way to play recurring bills and to move money between institutions. Many utilities, insurance companies and others that bill you regularly offer this option. It’s reliable and saves time.
Payments may clear sooner
There is potential that existing payments may also clear your account sooner. For example, if you normally have a debit clear your account on Tuesday mornings that transaction may now clear on Monday afternoons.
Timeline of implementation:
Phase 1 – Same day credits
The first phase went into effect on September 23, 2016. This phase allowed some ACH credits to be posted the same day.
Phase 2 – Same day credits and debits
Effective September 15, 2017 Phase 2 of Same Day ACH will go live. This will provide the ability to receive and process same day debits. Any business that will be processing Same Day ACH debits will be required to advise you prior to processing your payment.
Phase 3 – Earlier Funds Availability
Effective in March of 2018 all receiving financial institutions will be required to make funds available to recipients by 5:00 p.m. local time.
For more information on Same Day ACH please visit www.nacha.org.