ACH Payroll Processing & Fedwire Blog

ACH Payroll Processing & Fedwire Blog

Transitioning to Phase Three of Same-Day ACH

Wednesday, March 14, 2018
Transitioning to Phase Three of Same-Day ACH

Starting March 16, Phase 3 of the Electronic Payment Association's (NACHA) same day ACH payment processing will begin. This is the final phase of the process that allows payroll direct deposits and other forms of ACH payments to be made before the next business day.

According to the NACHA website, business-to-business same day ACH payments averaged over 10,000 transactions per day during the first few weeks of Phase 2 processing in September 2017. NACHA predicts that "approximately 1.4 billion same-day ACH payments annually" will be generated by 2028, ten years after rollout. Same-day payroll, business to business invoices, expedited bill payment and account to account transfers have been identified as the primary uses for same day ACH.

Here are some other key details:

Same Day ACH Processing Phase 3

Phase 3 requires all RDFIs to make all funds from same day ACH credits available for depositors and to accept and post them by 5pm the RFDI's local time.

For RDFIs that are located east of the U.S. and west of the International Date Line, be aware that time zone changes affect your ACH Operators’ ability to make Same Day entry files available. General best practice is to make sure funds are available to withdraw no later than the opening time of the business day after the entry date.

Originating Same Day ACH Transactions

Originating Financial Institutions (ODFIs) can submit files of same-day ACH payments through several clearing windows provided by the ACH Operators. The morning submissions deadline is 10:30am ET, with a settlement occurring by 1pm. The afternoon submission deadline is 2:45pm ET, with settlement at 5pm.

All RFDIs are required to accept same day ACH payments so that originating institutions are assured of being able to process same day ACH payments for their customers.

Same Day ACH Limitations

Most ACH payments (both credits and debits) are eligible for same day processing, but there are a few limitations that include:

  • Any transactions over $25,000 for each same day ACH transaction
  • International transactions (IATs)

To learn more about same day ACH payment processing and best practices, visit our recent blog post, "What Is Same Day ACH Payroll Processing?"


You can also request more information through the link below or by calling us directly at (855) 591-9865 to speak with one of our experts. ACH processing and directly related services for the payroll industry is what we do, processing approximately $140 billion dollars annually in ACH transactions for 110,000+ employers.

Contact us to learn more about same day ACH payroll processing



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