SAME DAY ACH

Same Day ACH

Effective on September 15, 2017 any payments made by writing a paper check, paid over the telephone, processed online or authorized bill payments could clear your checking account on the same day you write the check, authorize the payment by phone or initiate online. The faster processing of payments will cause your balance to change throughout the day as those items post.

Frequently asked questions

What is ACH?
The ACH Network is at the center of commerce in the U.S., moving money and information from one bank account to another through Direct Deposit and Direct Payment via ACH transactions, including ACH credit and debit transactions; recurring and one-time payments; government, consumer and business-to-business transactions; international payments; and payments plus payment-related information. Each year it moves more than $41 trillion and 24 billion electronic financial transactions.
What is Same Day ACH?
Same Day ACH offers an option to consumers, businesses, and governments that want to move their money faster. Instead of using paper checks that have to be physically delivered from bank to bank to move money, checks and other forms of payment are converted into electronic images that can be sent to/from financial institutions much faster. 

Starting September 15, 2017, ACH payments will process the same-day they are presented. Currently, most ACH payments process on the next business day.

All consumers, businesses, government entities and financial institutions that use the ACH Network to move money between bank accounts will benefit from the option to move ACH payments faster.

Why is faster better?
Same Day ACH offers substantial benefits in terms of faster availability, more efficient and transparent information exchange and more payments options for consumers, businesses, government entities and financial institutions.

We all use the ACH network daily. We get our payroll by direct deposit, make purchases with our debit and credit cards, pay bills, and transfer money. Same Day ACH allows those everyday transactions to clear our accounts quicker.  

Quicker processing means you can monitor your finances more closely. Did you forget to mail the check for your cable bill? No problem, you can go online and make the payment on the due date and it will arrive same day. No late fee to worry about.
What types of ACH transactions are eligible for Same Day ACH?
Virtually all types of ACH payments, including both credits (payroll) and debits (payments), will be eligible for same-day processing. Eligible transactions account for approximately 99 percent of current ACH Network volume.  

• Same-Day Payroll, supporting business’ needs to pay hourly workers, and providing flexibility for late and emergency payrolls and missed deadlines; and enabling employees to have faster access to their pay in these cases ( Implemented in Phase 1);
• Business to-Business Payments, enabling faster settlement of invoice payments between trading partners (Phase 2);
• Expedited Bill Payments using both ACH credits and debits, enabling consumers to make on-time bill payments on due dates, and providing faster crediting for late payments (Phase 2); and,
• Account-to-Account Transfers, providing faster crediting for consumers who move money among various accounts they own (Phase 2).

Are all transactions eligible for Same Day ACH?
No, not all transactions are eligible. International transactions (IATs) and high-value transactions above $25,000 will not be eligible. IATs are ACH transactions that is part of a payment transaction involving a foreign, or non-U.S. financial agency or institution. 
Will the federal government participate in Same Day ACH at any phase of implementation?
Yes, the U.S. Treasury has committed to participating in Same Day ACH beginning Sept. 15, 2017, in a phased implementation. At that time, the Treasury will be able to receive tax and non-tax Same Day ACH credits. With respect to origination of Same Day ACH, the Treasury will have this capability no later than October 2017 for EFTPS debits. Additional Same Day ACH origination capabilities will be adopted by the Treasury throughout 2017 and 2018. Throughout the Treasury's phased adoption of Same Day ACH, FedACH Services will process any ACH item eligible for same day settlement according to the ACH Rules as a same day item. The Treasury will, through its own internal controls, determine which of its agencies will participate in Same Day ACH.
What are the implementation “Phases” discussed above?
Same Day ACH will build upon existing next-day ACH Network capabilities. While the infrastructure is already in place there are many changes that need to occur to get everyone involved in the ACH payments network ready. The best way to do that was to roll it out in phases.

• Phase 1 - September 23, 2016, included credits only (payroll) with funds availability at end of your financial institutions processing day.
• Phase 2 - September 15, 2017, implementation date - includes both credits and debits with funds availability at end of your financial institutions processing day.
• Phase 3 - March 16, 2018, implementation date - includes both credits and debits with funds availability required by 5:00 p.m. local time.
If your question was not answered by the information provided, please call 219-474-5155 or toll-free at 800-850-5155 and ask for someone in the Operations Department.
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