November 5, 2015

4 things to know about same-day ACH processing


Photo: Shutterstock


Same-day ACH processing will be here next year. Are you ready to take advantage of this new option? Here are four things you ought to know.

When does it start?

According to NACHA,  the implementation of same-day ACH will come in three phases:

  1. Phase One will be ACH credits only and is effective September 23, 2016.
  2. Phase Two, in effect on September 15, 2017, will add ACH debits for the handling of returned items.
  3. Phase Three will add the rule that receiving institutions must make the ACH credit funds available by 5 p.m. at the receiving bank’s local time. It is effective March 16, 2018.

How does it work?

Same-day ACH is an optional way for retailers to have their funds processed and receive payment faster.  The new rule adds two new same-day settlement windows to the ACH Network. With these additional windows, funds will move three times each day between financial institutions. Retailers using this option will see earlier cutoff times each day for deposits, as well as a reduction in return times. Today when retailers have a check returned for non-sufficient funds, it can take more than two business days to find out they’ve been hit with fraud. With same-day ACH, NSF checks would come back one day sooner.

What will it cost me?

This convenience, of course, comes with a price tag. While the fee has not been finalized yet, the NACHA membership has proposed 5.2 cents per transaction, to be paid by the originating financial institution to the receiving institution.

What does this mean for retailers? It means you’ll get your money from ACH transactions faster, but at a higher cost.  Banks are expected to pass on the cost of the transactions to retailers, though it’s not clear at this time just how much of a hit you’ll have to take.

What are the benefits?

Obviously, you’ll be getting your money faster when you employ same-day ACH. Taking it a step further, you’ll be able to take advantage of improved cash flow, making more of your company’s money available for new stores, store remodels, or other capital investments.

Take the next step

If your business is already converting its checks to ACH transactions, you’re in a great position to get your money and your returns even faster with same-day ACH. If you haven’t implemented check conversion, this is another solid reason to get on board.

If you would like to know more about how this change can affect your business, the experts at Balance Innovations are ready to help. Contact us to start a conversation!