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Analysis

Same-Day ACH Debits

Getting ahead of the next phase of same-day ACH.

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Last year financial institutions, businesses, and consumers who use the Automated Clearing House network for payment processing gained the ability to send and receive same-day ACH credits. Companies found this capability quite useful and soon were engaging in nearly 200,000 of these transactions daily, according to NACHA, a nonprofit that administers and facilitates ACH payments. And in a TD Bank survey at the 2017 NACHA Payments conference, 40 percent of corporate finance professionals said that same-day ACH is among the top tools for getting paid quickly and lowering the costs of the finance function.

Following on the success of same-day ACH credits, the second phase of same-day ACH processing will enable originators to submit same-day debit requests beginning this Friday, September 15, 2017. As with the credits, same-day debits will be limited to domestic transactions of $25,000 or less.

Same-day debits are likely to increase demand for this payments rail, as NACHA reports that 60 percent of traditional ACH transactions currently undertaken are debits that are processed either in one to two days, or on a specified future date. This new, same-day payment capability will impact the finance functions of many U.S.-based organizations.

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