Coming September 15th:

Same-Day ACH

In an effort to drastically improve the U.S. electronic payments system, the Automatic Clearing House network, changes are being made to change the time-frame in which electronic debit payments are applied to your account.

Beginning on Friday, September 15th, 2017 all financial institutions, merchants, and vendors that accept electronic payments and debits will begin Same-Day ACH processing.

 

What does this mean?

These changes will result in a faster payment system. This means ACH payments you are sending may clear your account quicker than you are accustomed to. However, it also means that ACH payments you are receiving may post to your account quicker as well.  In the past, ACH transactions may have taken 1-2 days to process, such transactions – starting on September 15, 2017 – may post on the same day in which you authorized them.

 

What Are the Benefits of Same Day Electronic Payments?

Many merchants and billing companies may offer you the option to make a same-day electronic payment, such as to pay a bill or to transfer funds. If you agree, then the funds might be debited from your account as soon as that very same day. For example, if you have a bill due on the 15th of the month, the billing company might allow you to call or use its website on the morning of the 15th to make an one-time payment, and also have the funds debited from your account on the 15th.  This will help greatly if you get paid on a certain day of the month that may be the same day your bill is due. You will be able to avoid late fees by processing the one-time payment on the due date.

What Members Should Know

  1. Members should understand that when they authorize a merchant or biller to debit their account with their financial institution, the merchant or biller should include information or a statement about the timing of the payment. If the merchant or biller offers the consumer the option to make a same-day payment it might be referred to as a same-day payment, or noted that the merchant or biller intends to collect the funds as quickly as possible.
  2. If members have pre-authorized an electronic payment, such as a recurring mortgage or insurance payment, then very likely there will be no change to the time that these payments are posted to their account. As always, members’ financial institutions will receive and post these payments normally as designated by the transaction effective date.
  3. Members should always have sufficient funds to their account to cover every payment they make, authorize, or initiate, and they should frequently review their account statements and transactions.

 

As a member, do you need to do anything differently?

It has always been incredibly important to make sure that there are available funds in your account to cover any transactions you may initiate. Now more than ever, it will be crucial to keep enough, if not some extra, in your account to avoid any NSF or Overdraft fees. A great way to keep track of your account would be to utilize our free services such as Member.net or PAL (Personal Access Line, formerly known as Sybil.)

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