PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Today’s the Day for Same-Day (Debits)

By Sarah Grotta
September 15, 2017
in Mercator Insights
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Why Do Only 1 in 4 Small Businesses Have an eCommerce Platform? - PaymentsJournal

807551

Today is the day that financial institutions (FIs) will begin accepting same day ACH debits.  Most FIs will not only accept but also originate same day transactions.  An article in Treasury and Risk takes a look at opportunities for large corporates to integrate same day debit into their operations:

The primary reasons to use same-day ACH debits are to save time and money; to improve convenience for customers, particularly by providing a faster payment option for consumers; and to expedite payments to trusted partners for goods and services. When a company allows a vendor to receive payment by initiating an electronic debit to one of its bank accounts, instead of waiting for it to drop a check in the mail, the ACH debit process can significantly improve efficiency for both parties. Companies may find that same-day ACH debits are useful for making state and local tax payments, loan payments, and routine vendor payments, among other transactions.

 It also reviews operational impacts that corporations should consider before using same day debits, including timing, cash application and controls.  Controls are probably of greatest concern to those venturing into faster transaction processing options.   There is a $25,000 per transaction cap imposed on same day ACH transactions, but further internal controls are needed too:

Companies that will originate or accept ACH debits should consider working with their vendors and business partners to create controls. A first step is to amend contracts to clarify whether and how the business will originate or accept ACH debits. This will help reduce confusion, and possibly even ill will, among the trading partners.

Treasurers who want to control their company’s debit receipts should also speak with their banks to enroll in their ACH block or filter services. An ACH block signals to financial institutions that the account either does not accept ACH debits or does not accept any ACH transactions (it must specify which). A filter, by contrast, allows certain preapproved ACH entries—such as transactions with a particular vendor, lender, or other specified party—while blocking all other ACH debits. Without the appropriate blocks or filters, an ACH transaction can post to a company’s accounts at any time.

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

Read the full story here

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: Same-Day

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    AI Is Turning Accounts Receivable Into a Strategic Powerhouse

    AI Is Turning Accounts Receivable Into a Strategic Powerhouse

    July 15, 2025
    Embedded Finance

    Embedded Finance: Bringing Payments Under a Single Umbrella

    July 14, 2025
    Making Real-Time Payments a Reality

    Fulfilling the Promise: Making Real-Time Payments a Reality

    July 10, 2025
    mortgage

    The Rich Benefits of In-House Payment Systems

    July 9, 2025
    digital cards

    Beyond Plastic: Why Digital Cards Are the Future

    July 8, 2025
    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    What Premium Card Overhauls by Chase and Amex Reveal About the Credit Card Market

    July 7, 2025
    Rewire Acquires Imagen, Looking at Prepaid Cards for Migrant Workers

    Smells Like Team Spirit: What Makes Cobranded Credit Cards Work

    July 3, 2025
    uk banking outages

    New Continuous Strategies for Battling Account Takeovers

    July 2, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result