From the November 2010 issue of Treasury & Risk magazine

ACH Settlement Accelerates

While same-day settlement is revving up in the pits, most interested treasury staffs are still shuffling on the sidelines. One of the two big automated clearinghouse (ACH) electronic clearing networks, the one operated by the Atlanta Fed, introduced limited same-day settlement in August. True same-day ACH could expedite funds concentration, reduce float, help companies spot returns sooner and allow them to cut wire costs, but that remains a distant possibility for most companies.

Yet the progress is real. The product is up and running, and it's easy to use. Originating banks send the Fed a standard ACH payment file by the 2 p.m. ET transmittal deadline, explains Steven Cordray, project manager at the Fed.


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