Same Day ACH hits its third phase, mandating 5 p.m. availability of funds

Nacha has completed the third and final phase of the faster payments launch, requiring banks and credit unions to make Same-Day ACH funds available to depositors by 5 p.m. in local time.

Prior to the third phase of Same Day ACH, the receiving depository financial institutions were required to have funds available by the end of the processing day. The 5 p.m. requirement went live Friday at banks and credit unions receiving Same Day ACH funds.

“Banks and credit unions have met, and in many cases exceeded, the March 16 date for faster funds availability,” Jane Larimer, chief operating officer of Nacha, the electronic payments association, stated in a Friday press 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.”

Last year, Same Day ACH payments handled $87 billion via more than 75 million transactions, with growth of more than 50 percent in the fourth quarter. 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, Nacha said.

Additional Same Day ACH enhancements being developed include expanding access through a new, later processing window; increasing the dollar amount that can be transferred via Same Day ACH to $100,000; providing even faster funds availability for many Same Day ACH credits and other traditional ACH credits; and exploring the feasibility of ACH processing on weekends and banking holidays.

“The ACH Network moves tens of billions of payments across more than 10,000 banks and credit unions,” Larimer added. “The advent and implementation of Same Day ACH allows banks and credit unions to provide businesses and consumers with a faster electronic payment network — without compromising reliability or security.”