SAME DAY ACH: What every business should know

The National Automated Clearing House Association has implemented a new rule effective September 23, 2016.  This new rule allows for same day settlement of eligible ACH (Automated Clearing House) credit transactions and non-monetary transactions processed by the ACH Network. This new initiative will allow for faster movement of funds and additional payment opportunities; however it does not replace the existing ACH next day batch processing.

Same Day ACH will be introduced in three phases:

  • Phase 1 – September 23, 2016: Includes credits (i.e., payroll, payables) with transactions posted to the recipient’s account at the end of their Receiving Depository Financial Institution’s (RDFI) processing day.
  • Phase 2 – September 15, 2017:  Includes both credits (i.e., payroll, payables) and debits (i.e., receivables, rent collection) with transactions posted to the recipient’s account at the end of the RDFI’s processing day.
  • Phase 3 – March 16, 2018:  Includes both credits and debits with transactions posting to the recipient’s account by the required time of 5:00 p.m. local time for the RDFI.

What type of ACH transactions qualify for Same Day ACH processing?

  • Domestic credit transactions of $25,000 or less
  • Return Items
  • Notifications of Change (NOCs)
  • Pre-Notifications

Transactions that do not qualify include:

  • Transactions greater than $25,000
  • International ACH Transactions (IATs)
  • Federal government payments (i.e., tax payments)

How will I receive Same Day ACH transactions?

  • Heartland Bank is ready to receive Same Day ACH payments as required in the new rule, so you can be assured that any Same Day ACH payments received will be credited to your account the same day.
  • With the new rule you may receive ACH payments faster than you have in the past.  As such, you will want to be sure to update your client records accordingly to remain in compliance with NACHA Rules.

How can I find out more about Same Day ACH?