With the success of the rollout of Same Day ACH, the membership of NACHA has just approved the proposed rules change to provide another Same Day ACH processing window and to expand the processing day by 2 hours. NACHA summarized in their announcement the details of the changes:
Expanding Access to Same Day ACH
- Creates a third Same Day ACH processing window that expands Same Day ACH availability by 2 hours
- Currently, the latest that an ODFI can submit files of Same Day ACH transactions to an ACH Operator is 2:45 p.m. ET (11:45 a.m. PT)
- The new window will allow Same Day ACH files to be submitted until 4:45 p.m. ET (1:45 p.m. PT), providing greater access for all ODFIs and their customers
Providing Faster Funds Availability
- Establishes additional funds availability standards for ACH credits
- Funds from Same Day ACH credits processed in the existing, first processing window will be made available by 1:30 p.m. ET
- Funds from non-Same Day ACH credits will be available by 9:00 a.m. on the Settlement Date, if the credits were available to the RDFI by 5:00 p.m. on the previous day (i.e., apply the existing “PPD rule” to all ACH credits)
The three new rules have different effective dates. The faster funds availability rule will become effective on Sept. 20, 2019 and the new Same Day ACH processing window with expanded hours will go into effect on Sept. 18, 2020.
In addition to providing more access and an expanded processing day, NACHA has also expanded the per transaction dollar limit from $25,000 to $100,000. Financial institutions don’t have to provide the full $100,000 to their customers, but for those businesses that have a good risk profile, the expanded capacity will be useful and may offer an alternative to more expensive wire transfers.
I’ll say it again, Same Day ACH is not a real-time, faster payment, but for many use cases, it may be the “fast enough” transaction option and impact the development of other faster payment types just being launched.
Overview by Sarah Grotta, Director, Debit and Alternative Products Advisory Service at Mercator Advisory Group