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Will You Accidentally Pay Same Day With ACH Starting September 23?
There are a number of efforts for US payments systems intended to
speed the settlement of payments. The first of those improvements
goes live in September.
Historically, ACH payments are settled the next business day, or two
days later. Now, a Same Day ACH payment is being added. Same
Day ACH will reach its first implementation milestone in the US: All
Receiving Financial Institutions (RDFI) will be required to receive
Same Day ACH payments.
Settlement of transactions will occur during three different periods
during the day. The initial ACH settlement timing used today will
apply, and two additional times per day have been added. All funds
must be settled by 5 p.m. local time.
Why should I care?
Payment effective date will be used to determine the settlement
date for payments. If a prior date (stale date) or the current date is
used, those payments under $25,000 will settle the same day.
Same Day ACH payments will require bank account funding the same
day; same date and future dated transactions can all be sent on the
same file. Keep in mind that bank reconciliation processes may be
affected if some transactions settle the same day.
How to prepare?
Sloppy processes with bad effective entry dates could cause problems.
Check to see how payment effective entry dates are created in your
systems for your current payment files.
When current dates are being used, make manual process
adjustments to ensure next day value dates are used.
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