Financial Institutions Ready Themselves for Same-day ACH

We are getting closer to the launch of same day ACH. On September 23rd, all RDFIs will need to accept same day ACH transactions and will receive $.052 to do so, paid for by the ODFI. An article on the site, Deposit Accounts, discusses financial institutions’ readiness and use cases for same day:

Without question, the move from 1-3 day ACH to Same-day ACH will bring gain and some pains. Customers will love getting access to their money quickly, but banks will feel the effect of having to revamp systems. Financial institutions will have hoops to jump through to be compliant.

However, according to a recent survey by the NACHA, The Electronic Payments Association, 95% of financial institutions polled said they will offer their clients Same-day ACH origination services by year-end. Of those that will offer Same-day ACH services, 86% will offer it to all of their clients, while 14% will make it available to select clients, based on need.

The most discussed near term uses for same day include payroll transactions, B2B transactions, some bill pay transactions where expedited delivery isn’t already available and some person to person transactions. What will be really interesting to watch will be the price point that financial institutions can get for these transactions and how frequently the same day ACH product is actually used.

Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group

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