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Expansion of same day ACH

Expansion of Same Day ACH

These are exciting times in the world of electronic payments. Each month, more than 10 million Same Day ACH transactions flow through the network—a huge number considering the service was introduced just two years ago. This transaction volume will continue to grow, and with it a demand for increased accessibility to Same Day ACH. In response, NACHA recently approved new rules to expand Same Day ACH, making it more accessible with increased benefits. Here’s what you need to know about the new rules:

Ballot #1 2018:
Expanding Access to Same Day ACH (effective September 18, 2020)

This rule will allow for the origination of Same Day ACH later in the day. There are currently two deadlines to deliver ACH files to the ACH Operator, with the latest being 1:45 p.m. CST. As proposed, a new deadline of 3:45 p.m. CST will be established. Commerce Bank currently has deadlines of 1:00 p.m. CST and will introduce a later deadline for Same Day ACH as the rule becomes effective. The current target date of September 18, 2020 may change depending on the Federal Reserve’s ability to support it.

Ballot #2 2018:
Increasing the Same Day ACH Dollar Limit (effective March 20, 2020)

Same Day ACH transactions are currently limited to $25,000 or less. Effective March 20, 2020, the new limit for Same Day ACH transactions will be $100,000 or less.

Ballot #3 2018:
Providing Faster Funds Availability (effective September 20, 2019)

This rule improves the funds availability requirement for banks to post ACH transactions sooner.

Same Day ACH transactions: Same Day items submitted in the morning before the ACH Operator’s 9:30 a.m. CST window will post to the receiver’s account by 1:30 p.m. CST. Today these Same Day items generally post at the end of day.

Non-Same Day ACH credits: The current requirement for funds availability differ for consumer and business transactions. The new rule clarifies that banks must make funds available for all non-Same Day ACH credits received prior to 5:00 p.m. CST by 9:00 a.m. CST on the Settlement Date. This rule will become effective for all banks on September 20, 2019. Commerce Bank already meets these requirements.

Providing faster funds availability, current vs. September 20, 2019 Increasing same-day ACH limit - current vs. March 20, 2020 Expanding access to same-day ACH, current vs. September 18, 2020

Additional information is available at: https://www.nacha.org/rules/expanding-same-day-ach