Q: What is Same Day ACH?
A: The National Automated Clearinghouse Association (NACHA) has adopted a rule to provide a new capability for moving ACH payments faster. The rule will enable the same day processing of most ACH payments. Currently, ACH payments are settled on the next business day. This rule change will enable ACH Originators that desire same day processing the option to send same day ACH transactions to accounts at any Receiving Depository Financial Institution (RDFI). The rule will become effective in three phases as outlined below.
Q: Will all financial institutions offer Same Day ACH origination?
A: Most large ACH originating financial institutions will offer same day ACH origination services; however, it is expected that most midsize and smaller financial instituations will not offer same day ACH origination. Johnson Bank plans to offer Same Day ACH origination.
Q: What types of ACH payments are eligible for same day processing?
A: According to NACHA, 99% of ACH transactions will be eligible for same‐day processing. Only international transactions (IATs) and transactions above $25,000 will not be eligible.
Q: When will the three phases of the rule be implemented?
A: Phase 1 will become effective on September 23, 2016
Phase 2 will become effective on September 15, 2017
Phase 3 will become effective on March 16, 2018
Q: Will government payments be eligible for same day processing?
A: The federal government will not be participating in phase one of Same Day ACH when it becomes effective on September 23, 2016. According to the U.S. Treasury, any ACH transaction originated from, or received by, the U.S. government will not be eligible for same day settlement, and will continue to settle on a future date regardless of submission date and time. This limitation applies only to federal government payments, and not to state or local government agency payments. Some state and local government agencies may choose to participate in Same Day ACH processing.
Q: Will non‐monetary ACH transactions be eligible for same day processing?
A: The following non‐monetary ACH transactions will process same day if submitted within the processing windows:
Q: Will the current ACH processing schedule change?
A: The rule will enable the option for Same Day ACH payments through new ACH Network functionality, without affecting existing ACH schedules and capabilities. Johnson Bank clients, who have contracted for Same Day ACH origination will be able to submit files through two new submission deadlines, 9:00 a.m. and 11:30 a.m. CST, in order to be considered for same day processing.
Q: Is there an additional fee for originating Same Day ACH payments?
A: Yes, there is a different pricing schedule for Same Day ACH origination. Please contact your Treasury Management Relationship Manager for pricing information.
Q: How do I sign up for Same Day ACH?
A: Contact your Treasury Management Relationship Manager for more details on Same Day ACH.
Q: Can I block my account from Same Day ACH?
A: You can not block your account from Same Day ACH Origination. To ensure your file does not process same day, double check that you have the date you want the file to be effective in the effective entry date field in your file prior to sending over to Johnson Bank.
For ACH Receipt, all Receiving Depository Financial Institutions (RDFIs) are required to receive and process same day ACH payments according to NACHA rules.
Q: Is the over $25,000 value limit applied to a single item or to a batch?
A: The limit on transactions over $25,000 applies to a single item, not a batch. In addition, transactions may not be restructured or split to evade the $25,000 limit. For example, if a business has a loan payment of $50,000 due, that payment would not be eligible for Same Day ACH and should not be divided and sent as multiple same day entries in order to avoid the per‐transaction dollar limit. Dividing a higher‐value payment into separate transactions to get around this limit is an ACH rules violation.
Entries submitted in a same day processing window that are over $25,000 will not be rejected by the ACH Operator, but will be processed for next day settlement in the next available processing window.
Q: What happens if a batch submitted for same day settlement contains one or more item(s) over $25,000?
A: All items in the batch will be processed, and the item(s) over $25,000 will be assigned the next business day's settlement date, whereas the remaining items will receive same day settlement.
Q: In phase one, what happens if a batch submitted for same day settlement includes debit and credit items?
A: In phase one, only credit items are eligible for same day settlement. While debits are not eligible for same day settlement, there is a possibility that debits will process if sent in an ACH batch that is dated with a current or stale dated effective date. Any debit item(s) submitted in a batch that is dated with a current or stale dated effective day, will be processed and settled the next business day.
Q: If I send a Same Day ACH payment for processing, when will my account be debited?
A: If you originate a Same Day ACH Credit, your account will be debited the same day you originate the transaction.
Q: How important is the effective entry date?
A: With the introduction of Same Day ACH, the effective entry date in your batch file is critical. Assuming the file is submitted by the appropriate deadline, it is the effective entry date field that triggers same day settlement for eligible transactions. The current processing day in the effective entry date field, is interpreted as an intentional indication of the desire for same day settlement whether the effective entry date field contains the current processing date, or is invalid or stale.
Q: How can I ensure items not intended for same day settlement are processed properly?
A: If you have signed up for Same Day ACH, you should include a future date in the effective entry field to ensure future day settlement and send a separate ACH batch file.
Q: How do I change the effective entry date on my batch?
A: If you use software to create a NACHA formatted ACH file, work with your provider to ensure the software applies the effective date either Same Day or Future Day depending on when you want your ACH files to process. If you elect to send Same Day ACH files, work with your Treasury Management Relationship Manager to sign up for the Same Day ACH service.
If you use Business Gateway® to create a NACHA formatted ACH file, the system is ready. If you do not wish to originate Same Day ACH files, you do not need to do anything. If you would like to originate Same Day ACH files, work with your Treasury Management Relationship Manager to sign up for the Same Day ACH service.
Q: What will happen if I continue to send same day or stale dated files and I'm not signed up for Same Day ACH?
A: Stale dates will cause delays in normal ACH processing. If your file is received prior to 11:30 a.m. CST, it could be processed same day and you will be charged Same Day ACH fees.
Q: If I receive a Same Day ACH Credit, when will I see it in my account and how will I know it was a Same Day ACH?
A: Same Day ACH Credits received to your account will post by the end of the bank's posting day. The transaction will post to your account with the same type of transaction description and details as the ACH Credits that currently post to your account today.