Same Day ACH
Originating and Receiving Payments Electronically
NACHA’s recently approved Same Day ACH rule means that—come September 23rd, 2016—Receiving Depository Financial Institutions (RDFIs) are required to post Same Day ACH credits to recipients' accounts by their end of day processing deadline.
Virtually all types of ACH payments will be eligible for same-day processing by the end of the phased implementation period. The only ACH transactions ineligible for same-day processing will be International ACH Transactions (IATs) and individual transactions over $25,000.
Phased Implementation Approach
The Same Day ACH implementation will be spread out over three phases beginning in September 2016. This phased approach will provide an eighteen-month period over which businesses and financial institutions can manage their implementation efforts. This will allow the industry to gradually acclimate to a faster processing environment.
- In the first phase, effective September 23, 2016, domestic ACH credits that are less than $25,000 will be eligible to be processed. RDFIs will be required to provide funds availability by the end of the RDFI’s processing day. By requiring that all RDFIs accept same-day ACH transactions, the Rule will ensure the universality of same-day capability throughout the ACH Network.
- In the second phase, effective September 2017, domestic ACH debits that are less than $25,000 will become eligible for same-day processing. Same-day credit funds availability will remain at the end of the RDFI’s processing day.
- Finally, in the third phase, effective March 2018, RDFIs will be required to provide funds availability for same-day credits no later than 5:00 p.m. at the RDFI’s local time.
Federal Government - Exclusion
Initially, the federal government will not participate in the Same Day ACH implementation. Therefore, any entry originated from, or received by, the federal government will not be eligible for same day settlement and will continue to settle on a future date. For example, federal tax payments will not qualify for same-day ACH settlement. Information regarding the federal government’s participation in later implementation phases will be forthcoming.
Identification of Same Day Transactions via the Effective Entry Date
Same Day ACH transactions will be identified by using the current day's date in the Effective Entry Date field of the Company/Batch Header Record.
The rule change will allow urgent payments to be processed the day they are due, along with making it easier to process payroll faster.* As an ACH originator, you will be better able to respond to emergencies, make off-cycle payments (e.g., reimbursements), and correct errors in employees’ pay and tax deposits.
Same Day ACH Credits Processing Considerations
Beginning September 23rd, ACH credits originated by you that meet all of the following criteria will be processed, settled, and charged as Same Day ACH transactions:
- Destined for accounts at other banks, excluding Federal Government payments
- Not destined for banks outside of the U.S. (i.e., not IAT transactions)
- Dated with the current day's date in the Effective Entry Date*
- Valued less than $25,000
- Received for processing by 12:30 p.m. CT
Same Day ACH credits originated by you and destined for Amegy Bank accounts will be processed and settled on the same day as long as they are received for processing by the evening cutoff time. Same Day ACH charges will not apply.
The existing, evening cutoff time for next-day settlement will not change.
IMPORTANT: If you currently send ACH credit batches with a Batch Effective Entry Date equal to the current date, you should evaluate whether you require same-day or next-day settlement. All domestic credits that are less than $25,000 that are received by the bank prior to the Same Day cutoff time will be processed as Same Day Transactions. Same Day Transaction fees will apply to transactions going to banks other than Amegy Bank. To avoid Same Day fees, you may transmit or submit your file after the Same Day cutoff time or use a Batch Effective Date in the future.
We Are Here to Help
This is a big step towards making payments faster for you. We will continue to share more information as September 23rd approaches as you prepare and understand the implications of making Same Day ACH a reality.
Please contact Treasury Management at 713-235-8805 or your Relationship Manager if you have any questions.
*If you use AmegyConnect® to originate ACH transactions, you must be enrolled in Same Day ACH to take advantage of same-day settlement.