You'll Get Your Paychecks Faster By the End of the Year

by Sarah Grotta 0

In an attempt to add excitement to same day ACH, the St. Louis Post Dispatch shared an article that encourages individuals to think that they will received their payroll deposit sooner than they do today:

According to the National Automated Clearing House Association (NACHA), the organization that oversees the automated clearing house (ACH) network, major U.S. financial institutions are on course to offer to same-day ACH payments beginning Sept. 23

That’s the day a new rule requiring financial institutions accept same-day online bill and person-to-person payments is set to goes into effect (more on that later). But, NACHA said, a majority of these major players plan to extend similarly speedy payment services to their business customers as well. Per a survey it conducted in January, 100% of the top 25 ACH-originating financial institutions are planning to offer same-day payroll payments and 95% are planning to offer same-day business-to-business payments by the end of the year. An overwhelming majority (86%) plan to offer these services to all their customers, while the remaining 14% will offer them to select clients based on need.

The move could mean you’ll see your paycheck deposited into your bank account a bit sooner than before — on the same day the payment is originated, NACHA said.

Although the opportunity to process ACH transactions in the same day will be available through NACHA’s initiative, businesses are not going to expedite when they pay employees. Businesses certainly will not use same day ACH for all of their payroll transactions if they are more expensive. Same day ACH transactions are anticipated to carry a higher fee than transactions processed. Same day ACH may be very helpful for emergency payroll fixes, last day payroll or even as a way to pay free-lance or “gig economy” workers who are often paid by the engagement, not necessarily over a set time frame.

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

Read the full story here