What is Same Day ACH?
What is Same Day ACH?
Same Day ACH offers an option to businesses that want to move their money faster. It is an immediate action that Third Party Payment Processors and financial institutions have undertaken to modernize the payment system, which creates a building block for a variety of products and services.
Using Same Day ACH processing in conjunction with ACHWorks, our qualifying clients have the tools available to process and settle ACH transactions in the Same Day. ACHWorks is pleased to offer Same Day ACH as a valuable service to allow you to receive payments, and to pay vendors and partners faster.
When does this go into effect?
Same Day ACH is already in effect. Let us know if you would like this capability:
Are there fees associated with this service?
Yes, in order to cover processing costs, there will be a small per item origination fee for Same Day items.
Does Same Day ACH affect all credits and debits?
It can as you choose. You are in control.
Are there limitations to the type of transactions that can be sent via Same Day ACH?
Yes, there are dollar limitations on Same Day ACH. These limitations and restrictions are defined below:
- Transaction Limit: $100,000
- The over $100,000 value limit applies to a single item. In all three Same Day ACH implementation phases, no single item over $100,000 will be eligible for same day settlement.
- On March 31st of 2021 the transaction limit will be increased to $1,000,000.00.
Is Same Day ACH a unique offering by ACHWorks?
No. All financial institutions have been required to receive Same Day ACH payments and provide credit for same day transactions since September 23, 2016. Same Day ACH Origination is optional, so not all banks or payment processors support it.
What changes will our customers need to make to ACH files and transactions?
ACHWorks encourages customers to fully understand what identifies an ACH transaction as Same Day to ensure we process your transactions as you desire. To ensure your transaction is processed properly and that unwanted Same Day ACH fees are not incurred, please make certain you have the appropriate Effective Entry Date.
What will I need to do?
ACHWorks customers will need to follow a few steps to prepare for Same Day ACH:
- Same Day ACH is active by default for all ACHWorks customers, unless you have opted out or you have integrated software that is incompatible with Same Day.
- Use the appropriate Effective Entry Date.
- Send files within the Same Day ACH cut-off times.
- Understand that applicable fees will apply.
What are the benefits of Same Day ACH?
There are several benefits of Same Day ACH. In most cases, Same Day ACH cost would be lower than other traditional payment methods such as wire transmission. This service will also allow customers to move money more quickly when needed within that same day. For example, for Loan Funding, Advance Funding, Vendor Payment, emergency payroll or same day bill payment.
What are the submission deadlines for processing Same Day ACH?
The origination of all Same Day ACH files, transactions and batches must be received by 3:00PM ET / 12:00AM PT to process as a Same Day.
When will funds be available for use?
Receiving Banks should provide end-of-day funds availability for all Same Day credit entries received. Most Receiving Banks make funds available by 6 PM ET.
Which systems support Same Day ACH?
The following ACHWorks systems support Same Day ACH capability:
How will returns and NOCs be handled?
RDFIs will not be required to process returns on the same day that the forward entry is received. The existing return timeframe will still be applicable. RDFIs will have the option of using any of the available settlement windows for returns, as long as the existing return timeframe is met.
What type of transactions are good candidates for Same Day ACH?
- Emergency payments
- Off-cycle disbursements and corrections or payouts
- Time sensitive payments
- Account transfers
- Errors/payment re-initiation, etc.
- Expedited credit ACH receipt
- Debit ACH collection
- Error correction
Who do I contact if I have questions regarding Same Day ACH or ACHWorks ?
Please contact ACHWorks at +1 (866) 463-2439 info@achworks.com