What is the future of same-day processing?

by: Henry Meier

Whenever I get a chance I like to remind credit unions of the big issues right around the bend.  It’s important to pullback the lens and look at the forest instead of the trees.

One of the biggest shifts on the horizon is the movement of NACHA towards mandatory same-day settlement of ACH transactions.  It’s important not only because of its operational impact but also because, when fully implemented, it could either provide needed compensation for credit unions or conversely become the next frontier of regulator micro management in the name of so called consumer protection.

Under existing NACHA rules,  ACH payments are settled by the next business day.  New rules, once fully  phased in over a three stage process starting  in September 23, 2016 ,  mandate that  NACHA network participants must  be able to process payments the day they are received if requested to so  by the financial institution that originates the transaction (The ODFI). Specifically same-day settlement requests received by Receiving Depository Financial Institutions by 1030AM Eastern Time will have to be processed by 1:00 PM and payments received by 3:00 would have to be processed by 5:00PM.

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