With the third and final phase of same-day automated clearing house payment
processing now in effect, ACH governing body NACHA is turning its attention
to improving the program through higher transaction limits, adding a later
processing window, and other changes.
Same-day ACH transactions currently are capped at $25,000.
Herndon, Va.-based NACHA on Friday said that among “additional enhancements
being developed” is a $100,000 cap. The planned change comes in the wake of
complaints that the current limit is too low.
limits, please,” implored an executive with an investment firm
while attending NACHA’s annual payments conference last April in Austin,
Texas. The executive noted that many of her clients trade securities in
amounts exceeding $25,000. Bankers and executives with other companies, such
as a payroll processor, also said the current limit could divert
transactions away from same-day ACH channels.
A second enhancement is a later processing window. Conference speakers last
year also strongly supported that idea, especially for same-day debits. With
the advent of same-day credits, the ACH network began processing with two
windows, one in the morning and the other in the afternoon. Anticipating the
likely volume growth that would come when same-day debits went live in
September 2017, several speakers said they’d like to see more windows during
the day to even out the flow and better suit the West Coast, which is three
hours behind the East Coast. Others said more submission times would
encourage more usage.
Other enhancements NACHA is considering include providing even faster funds
availability for many same-day ACH credits and other traditional ACH
credits, and the feasibility of ACH processing on weekends and bank
holidays. NACHA didn’t say when the possible changes would take effect, and
a spokesperson was unavailable Monday morning.
third phase of the same-day program required by last Friday
that banks and credit unions that receive same-day ACH credit payments make
funds available to their depositors by 5 p.m. local time.
“Banks and credit unions have met, and in many cases exceeded, the March 16
date for faster-funds availability,” Jane Larimer, NACHA’s chief operating
officer, said in a news release. “This marks the smooth launch of all three
phases of same-day ACH in the U.S., providing a ubiquitous faster-payments
option for businesses, government agencies, and consumers.”
In 2017, same-day ACH transferred $87 billion through more than 75 million
transactions, with growth of more than 50% in the fourth quarter, NACHA
reported. “This growth, coupled with the results of recent surveys of banks,
credit unions, and businesses, all point toward continued adoption of
same-day ACH in 2018,” the association said.
Same-day ACH’s Phase 1 saw credit transactions go live in September 2016,
followed by debits in Phase 2 a year later.