A new ruling by the association that governs electronic payments (NACHA) will require all financial institutions to accept and process certain transactions, called ACH (Automated Clearing House) payments, from businesses same-day. This service is also referred to as Same Day ACH.
While there are many components to Same Day ACH, let’s start with the basics.
What is Same Day ACH?
Same Day ACH is an optional payment method for businesses where payments sent “today” may be received and credited “today.” These payments:
- Can be sent to any bank account in the United States, including personal accounts.
- Cannot equal more than $25,000 per transaction.
- Only include credits.
The Same Day ACH ruling was effective September 23, 2016.
How does Same Day ACH affect my business?
You may also notice Same Day ACH payments may be credited to your accounts more quickly, increasing your funds availability and cash flow opportunities. Plus, payments and payment-related information may flow more rapidly from bank to bank.
In addition to these benefits, Same Day ACH could also impact:
- Your accounting system
- Intra-day settlement
- Trading partner agreements
It’s important to review and prepare these areas of your business for the upcoming Same Day ACH changes.
If your business would like more information on Same Day ACH, contact one of our Cash Management Specialists.