Upcoming Industry Changes – Same Day ACH
On Friday, September 23rd, 2016, ACH payments in the U.S. will undergo a significant change with the introduction of Same Day ACH (Phase I). The goal of Same Day ACH is to allow the U.S. payments system to accelerate certain types of ACH payments. The process of implementing Same Day ACH will occur in three phases over the next three years.
- What is Same Day ACH? Same Day ACH will allow U.S. financial institution to process certain ACH payments during the current day. Eventually, both consumers and businesses will be able to send and receive ACH credits and debits to external accounts during the same day if submitted by 1:45 PM CST.
- What is Same Day ACH (Phase I)? On September 23rd, Phase I will be implemented. During this phase, financial institutions will be required to receive and post domestic ACH credits up to $25,000 if properly submitted. Funds will be required to be available to the account holder by the end of the processing day.
Some financial institutions may allow ACH originators to submit Same Day ACH credit transactions during Phase I, while others may choose to opt out completely.
Most of the changes associated with Same Day ACH will be transparent to bank clients. Phase I will begin laying the foundation for the subsequent phases. We will communicate information about these upcoming phases as they occur.
- How will Oakworth Capital Bank respond to Same Day ACH (Phase I)? Oakworth Capital will begin accepting Same Day ACH credits up to $25,000 as required. These credits will be memo posted to the designated account during the day, with full credit being granted to the account holder by the end of the day.
Oakworth Capital will begin allowing certain ACH Originators the ability to initiate Same Day ACH transactions in 2017. Details to follow!
Who do I contact if I have questions regarding Same Day ACH or Oakworth Capital’s plans surrounding Same Day ACH? Please contact your Oakworth Capital Client Advisor or Trent Green at (205)263-4711 / firstname.lastname@example.org.