With four consecutive surveys of financial institutions finding no increase in fraud as the result of same-day ACH processing, the volume of same-day transactions is expected to continue its climb, according to NACHA–The Electronic Payments Association.
The third phase of Same Day ACH processing in March 2018 marked the completion of a two-year long initiative that has led to rapid growth in same-day processing.
NACHA launched Same Day ACH processing in September 2016 for credit entries. Phase 2, which began in September 2017 introduced same-day processing of debit payments and the third phase ensured that all funds would be available by the end of the receiving bank's business day. Although the system is still limited to U.S.-based payments and caps transaction amounts at $25,000, NACHA saw a busy first quarter with a 220% transaction increase over the same period in 2017.
But despite encouraging reports, no one is taking security for granted. While the speed of same-day processing is a convenient option for businesses who want to move money quickly, it also imposes added challenges to the process of detecting and investigating suspicious activity.
Improved Risk Management
NACHA is working to put improved risk management and fraud detection capabilities into place later this year. A recently released "Request For Comment" on its website invites feedback from ACH participants. Some of the proposed updates include:
- Imposing time limits on receiving financial institutions (RDFIs) making a claim against an ACH originator
- Differentiating among types of unauthorized returns
- Supplementing the fraud detection standard for web-based debits
- Allowing receiving financial institutions to indicate whether an original transaction was questionable while being returned
- Supplementing the existing account information security requirements for large Originators and Third-Parties
The proposals are an attempt to balance the additional security measures against the friction points on both sides of the transactions.
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