We’re quickly approaching another milestone in the payments processing world of ACH, where business needs and market demands require even faster payments. Amidst a backdrop of “instant” everything, the National Automated Clearinghouse Association (NACHA) announced the adoption of a Same Day ACH rule years ago, acknowledging that there are times when processing electronic payments on a next-day or two-day basis is simply not fast enough. So it’s all getting faster—in phases.

Last September, Same Day ACH began phase 1 with ACH Credits, including time-sensitive payments like payroll and taxes. This September, phase 2 rolls out with ACH Debits, i.e. faster collections. Finally, you can expect faster funds availability in phase 3 with Same Day ACH next spring.

What does this now mean for your business?

It means options.
Now you can choose to be flexible with how you process ACH. For your convenience, Same Day can save the day, but if the payment isn’t urgent, there’s still next day settlement available.

Mind the cut-off time.
To originate a Same Day ACH file, we’ll need your file by 1:00 pm latest or it will be processed and settled the following day.

It’s a superior service.
Same Day ACH transactions cost more, so we recommend you take advantage of this only when it makes the most sense for your business; think emergency payroll, bonuses or off-cycle payroll, insurance payouts to consumers, online due-date payments, or business to business transactions contingent on receiving payment.

Most transactions are eligible.
According to NACHA, 99% of ACH payments processed every business day are eligible for same-day processing; two exceptions are international transactions and payments above $25,000.

Interested? Here are some tips to get you going:

  • Contact your financial institution for more information if you’re interested in this same-day service
  • Consider which of your ACH transactions could be a good fit for the Same Day ACH service
  • Check that the “effective entry date” in your current origination files matches your intended settlement date
  • Consult with your IT team on ensuring that your payroll and accounts payable systems are set up to allow you to select a same-day effective date (and potentially for some, but not all, batches)
  • Ask us about accessing intraday reports to closely manage your liquidity and cash position with debits and credits happening sooner than before

Give our treasury management team a call at 866-265-9195 or email TreasuryManagementSales@CamdenNational.com to learn more, or to let us know you’re interested.