Electronic payments and online opening of a checking account

Over the past couple of weeks, we have received questions about whether credit unions can place a hold on ACH transfers that will be used to fund the online opening of a checking account or make the funds available the day the account is opened. The fact pattern is something along the lines of

• A member opens up a checking account online; and
• The member intends to fund the opening of the account with an ACH debit transfer initiated by the credit union.

Section 229.10(b)(1) of Regulation CC generally requires that funds deposited into a checking account by an electronic payment be made available the next business day following the banking day on which the credit union received the electronic payment. And an electronic payment is considered received under Regulation CC when the credit union receiving the payment has received “(i) payment in actually and finally collected funds; and (ii) information on the account and amount to be credited.” See, 12 CFR § 229.10(b)(2)(i) & (ii). So the answer seems pretty straight forward. It appears that the funds need to be made available the next business day, and none of the exception holds described in section 229.13 apply to electronic payments.

 

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