As the popularity of Same Day ACH processing continues to grow, the voting membership of the organization that administers the ACH Network has voted to increase both the hours and the dollar limits for ACH transactions.
The new rules, which take effect in 2019 and 2020, had been sought by business users of ACH since it began in 2016, according to Jane Larimer, chief operating officer of NACHA, the nonprofit organization that oversees the ACH Network. The expansion comes in the form of three new rules:
- Funds from Same Day ACH credits processed during the existing first window will be available by 1:30 p.m. local time of the receiving institution. Funds from certain other ACH credits will be available by 9 a.m. local time by the receiving financial institution. This rule takes effect on Sept. 20, 2019.
- The Same Day ACH per-transaction dollar limit will be increased to $100,000 from $25,000, beginning on March 20, 2020.
- A third window for Same Day ACH processing will be added, expanding availability by two hours, effective Sept. 18, 2020. Currently, an originating institution can submit files up until 2:45 p.m. ET. The new window will allow files to be submitted until 4:45 p.m. ET.
NACHA: Same Day ACH Use "Thriving"
The new rules are expected to drive even greater use of same-day ACH processing, which NACHA says its transaction data shows is "thriving."
The service has experienced rapid growth in use since it was introduced. NACHA launched same-day ACH credit processing in September 2016 and debuted same-day for debits a year later. Growth has been fueled largely by direct deposit payroll, internet and B2B use.
Almost 41 million same-day ACH transactions were recorded in the second quarter of this year – an increase of 243% from the same quarter last year, according to NACHA.
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At Cachet Financial Services, our sole focus is providing ACH processing and related services to the payroll industry. We process $150 billion annually in ACH transactions – including same-day ACH – for more than 110,000 employers. Our clients have the advantage of our deep expertise as well as the expertise of our sister companies Payroll Tax Management, SBS Payroll and Time Rack. To learn more about best practices for using same-day ACH processing, you can read our blog on the topic here. To learn more about Cachet Financial Services, watch our new video and feel free to reach out by telephone or by clicking on the link below.