Beginning September 15, 2017, you will start to see Same Day ACH debits* across your accounts! This is the next step in a process that began in 2016, which is streamlining the way you access your funds.
In our fast paced world of new technology, Same Day ACH creates a number of benefits for you as a customer. Late last year, the National Automated Clearing House Association (NACHA), which manages Automated Clearing House payments, implemented a new rule allowing most ACH transactions to be processed and posted the same day they are authorized.
How can I use Same Day ACH Payments?
- Same day payrolls – Enables employees to have faster access to their pay.
- Business to business payments – Faster settlements of payments between businesses for faster invoice processing.
- Expedited bill payments – Customers can make on-time bill payments on bills due same day and this allows for faster crediting for late payments.
- Account to account transfers – Provides faster crediting for customers who move money among various accounts they own.
What qualifies for Same Day ACH processing?
Almost all types of ACH payments, including both credits and debits are eligible for same-day processing. International transactions and transactions above $25,000 will not be eligible. Additional qualified transactions include returned items, notification of changes, prenotifications or prenotes for future debit and credit transactions, zero dollar transactions and debit and credit transactions with an effective date the same day as the authorized date.
What does this mean for me as a customer?
It is extremely important to ensure there are enough funds in your account to cover any transactions you are authorizing to be paid from your account. When you authorize a payment to pull from your checking account via ACH payment through an online bill payment system, if sufficient funds are not available in your account the same day posting could cause the account to be overdrawn.
Overall, Same Day ACH processing will allow for faster access to funds transferred between accounts and more efficient processing of everyday transactions. Beginning September 15, you will start to see ACH Payments debited and credited from your account the same day you authorized them.
One example: It is September 30, 2017. Your car payment is due on October 1, 2017. You log into your online banking account to pay this bill and authorize the financial institution to pay your loan payment of $400. If there is not $400 in your account and your payment qualifies for same day ACH posting, you would overdraw the account under these new payment processes.
* Same Day ACH funds will be available to the recipient the same day it is transferred, provided the daily cut off times are met.