Originating and Receiving Payments Electronically
It’s an exciting time in the payments industry with several innovative initiatives underway designed to move payments faster! One of these initiatives is NACHA’s “Same-Day ACH Rule” which builds upon existing ACH Network next-day settlement capabilities and establishes a new same-day settlement capability giving businesses an option to send and receive payments faster.
Phased Implementation Approach
Implementation of the “Same-Day ACH Rule” is spread out over three phases that began in September 2016. This phased approach provides an eighteen-month period over which businesses and financial institutions can manage their implementation efforts. This allows the industry to gradually acclimate to a faster processing environment.
- The first phase was implemented on September 23, 2016, and provided for same-day settlement of domestic ACH credit entries of $25,000 or less with funds being available by end of the Receiving Depository Financial Institutions (RDFI's) processing day.
- The second phase of implementation will occur on September 15, 2017, and will enable same-day settlement of domestic ACH debit entries of $25,000 or less. Same-day credit funds availability will remain at the end of the RDFI's processing day.
- Finally, in the third phase, effective March 16, 2018, RDFI's will be required to provide funds availability for same-day credits no later than 5:00 p.m. in the RDFI’s local time.
The federal government did not participate in phase one of the same-day ACH credit implementation. Therefore, any entry originated from, or received by, the federal government today, is not be eligible for same-day settlement and is being settled on a future date. For example, federal tax payments do not currently qualify for same-day ACH settlement.
Important Update: The federal government has operationally committed to participating in same-day ACH as of September 15, 2017, beginning with the capability to receive tax and non-tax same-day ACH credits.
If you originate ACH transactions, here are facts you need to know to prepare for upcoming changes to accommodate same-day ACH:
- Beginning September 15, 2017, domestic ACH debit entries of $25,000 or less, originated by you that meet the following criteria will be processed and settled as same-day ACH transactions.
- Dated with the current day's date in the Effective Entry Date field.
- Please note: Stale or invalid dates in the Effective Entry Date field will be processed in the next available window, which could be same-day or next-day; and
- Received for processing by 12:30 p.m. CT for Direct Send clients and by 12:00 p.m. CT for AmegyConnect® clients.
- Please note: If you currently process and submit files on non-banking days (i.e., weekends and/or holidays), those files are processed at the open of business on the next business day. Entries contained within those files will be qualified and billed as same-day if the effective entry date of the batch(es) is equal to or less than the processing date.
- To avoid same-day processing, submit your file after the cutoff time referenced above or use an Effective Entry Date in the future.
- Domestic transactions greater than $25,000 and international transactions do not qualify for same-day processing.
- Same-day ACH transactions are assessed an additional per item fee of $1.00.
- Please note: the Same-Day Transaction Fee only applies to transactions going to banks other than ZB, N.A and its divisions.
- We recommend reviewing and updating the ACH Debit Authorization Form signed by your customers, if necessary, so that it addresses the possibility of same-day settlement.
E-INVOICING & PAYMENTS
If you use our e-Invoicing & Payments service, here are facts you need to know to prepare for upcoming changes to accommodate same-day ACH:
The e-Invoicing & Payments product does not allow for same-day ACH debit processing. Your payments will continue to process on the next business day as they do today, and the same-day ACH fee will not apply. We will evaluate the feasibility of adding this functionality to the product at a later date.
If you receive ACH debit transactions in your account, here are facts you need to know to prepare for upcoming changes to accommodate same-day ACH:
- Beginning September 15, 2017, domestic ACH debits (up to $25,000) may post the same day as submitted.
- As a best practice, companies receiving ACH debits should account for anticipated transactions to ensure sufficient funding.
- Same-day ACH debits may post up to 4:00 p.m. CT and should be considered for end-of-day investment decisions.
Important Product Changes to Accommodate Same-Day ACH
ELECTRONIC DATA INTERCHANGE (EDI)
If you use our EDI service, here are facts you need to know to prepare for upcoming changes to accommodate same-day ACH:
Clients Receiving EDI Translated Reports via AmegyConnect or Facsimile
- As of August 7, 2017, dependent on your received activity, you could receive a second report each day.
- You will continue to receive the morning report at 8:00 a.m. CT which includes items received up until 3:00 a.m. CT with a settlement date of current day.
- You may receive a second report at 4:00 p.m. CT which will include any items received from 3:01 a.m. CT – 3:45 p.m. CT with a settlement date of current day.
- Please note: The second report will only be sent if you have items.
- There is no additional fee to receive the second report within AmegyConnect.
- Please note: The standard per-page fee will apply for the second report received via Facsimile.
Clients Receiving FEDI NACHA Files via Direct Send (SFTP)
- As you do today, you will continue to receive the morning file at 8:00 a.m. CT which includes:
- Current day's settlement date items
- Previous day's Same-Day items
- If you prefer to receive two separate files or one file after 4:00 p.m. CT, please contact Treasury Management at 713-235-8805.
ACH POSITIVE PAY
If you use our ACH Positive Pay service, here are facts you need to know to prepare for upcoming changes to accommodate same-day ACH:
- Effective September 15, 2017, we will begin loading ACH Positive Pay exceptions twice a day.
- We will continue to load exceptions at 7:00 a.m. CT which includes exceptions from ACH items received up until 3:00 a.m. CT with a settlement date of current day.
- Beginning September 15, 2017, we will also load exceptions at 4:00 p.m. CT which will include exceptions from ACH items received from 3:01 a.m. CT - 3:45 p.m. CT with a settlement date of current day.
- So that you have sufficient time to decision your exceptions, the decision window is being extended to 6:00 p.m. CT.
- Please note: If you do not provide a decision by the cutoff time, your default decision (Pay or Return) that you established at implementation will apply.
- We recommend decisioning your exception items twice a day, once in the morning after the first exception load and then again after the afternoon exception load. Most of your exceptions will continue to be in the morning load.
- There is no additional ACH Positive Pay fee for the second exception load or the extended decision window.
- Please note: The standard per-item exception fee and the standard per-item exception return fee will apply.
- Here are a few Helpful Tips to assist with effectively managing your ACH Positive Pay exceptions:
- Enroll in Notification Alerts which can be delivered via text and/or email. Receive alerts when exceptions are loaded and thirty minutes before the end of the decision window.
- Add our email address, NetSTAROperations@amegybank.com, to your Contact List and/or Whitelist to receive your Notification Alerts in a timely manner.
- Set up ACH filters for all trading partners who are authorized to debit your account(s).
We Are Here to Help
Please contact our Treasury Management department at 713-235-8805 (Houston), 214-754-9474 (Dallas), or 210-343-4419 (San Antonio) if you have any questions. Click here to view our Same-Day ACH Service Reference Guide.
*If you use AmegyConnect® to originate ACH transactions, you must be enrolled in Same Day ACH to take advantage of same-day settlement.