Much has been written about the expectations for faster payments, particularly in the form of same day ACH. This article discuss the positive implications for smaller financial institutions to have a level playing field for solutions like consumer person-to-person payments. As Tammy Stolpp, senior vice-president with The Bank of Hemet told NACHA:
Same-Day ACH keeps us relevant as a small community bank. Customers expect faster payments now, and we see demands increase every day. Same-Day ACH now will help keep us on an even playing field with big banks. Same Day ACH allows us to continue to compete. We want to offer next-generation services. We don’t want to look like a small bank, and Same-Day ACH levels the playing field.
Another potential revenue generating use for same day ACH is emergency payroll payments which are sometimes managed through wire transfer today:
When you have an originator that has thousands of items and a massive payroll, if a deadline is missed, it’s really hard on everyone. For example, we have municipalities as customers that have contractual agreements that mandate that their employees get paid in a certain way at a certain time. It’s a nightmare to issue manual checks. Same-Day ACH will now be a huge safety net for our customers.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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