Posted: Mar 19, 2018
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Faster payments mean a vendor getting paid by its customer quicker, or getting a P2P transfer into the recipient’s bank account the same day. Automated Clearinghouse (ACH), the network that connects every financial institution, and makes payroll deposits, bill pay and business settlements possible, has been undergoing changes in phases. The phases represent incremental steps in the process to shorten the length of time it takes to make payments, from days to hours. The third phase of this transition went into effect March 16, 2018, and credit unions and their members, especially business owners, need to be aware of the impact. 


As previously reported on ThePaymentsReview, same day ACH builds upon the networks existing set up of settlement functionality to provide new and faster options for same day processing and settlement of ACH transactions. This creates new opportunities for credit unions, along with new obligations as a Receiving Depository Financial Institution (RDFI).


The 1st phase, which went into effect September 23, 2016 provided for end of day settlement of credit entries, also known as ACH push payments. The 2nd phase, which began September 15, 2017 provided for end of day settlement of debit entries, or ACH pull payments. The 3rd and final phase requires that a receiving RDFI must make funds available from same day ACH credits for withdrawals by 5PM at the RFDI’s local time.


NACHA’s (The Electronic Payments Association) Same Day ACH Rule allows originating FI’s (ODFIs) to submit files of same-day ACH payments through two additional clearing windows provided by the ACH Operators:

  • A morning submission deadline at 10:30AM ET, settlement must occur at 1:00 PM

  • An afternoon submission deadline at 2:45PM ET, settlement must occur at 5:00PM

A graphic provided by NACHA outlines the responsibilities of RFDIs, which include all credit unions.


Source NACHA The Electronic Payments Association


Same Day ACH has numerous use cases that can benefit consumers, businesses, government entities and FI’s that use the ACH network. Substantial cases include:

  • Same-Day Payroll

  • Business to Business (B2B) Payments

  • Expedited Bill Payments

  • Account to Account Transfers


Same Day ACH Specifies all ACH receivers, both RDFI’s and businesses, are required to receive same day payments. These are available for virtually any ACH transaction, except for International ACH Transactions (IATs) and single transactions over $25,000 which are excluded. And as of March 15, the receivers must post same day entries and make funds available as required.


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Dave Chojnacki

Dave ChojnackiDave Chojnacki

Dave has more than 10 years of relationship management experience and holds a Credit Union Compliance Expert (CUCE) Designation from CUNA. He currently serves as Director of Consulting Services at Trellance.

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