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Questions on Same Day ACH? Let Us Break it Down for You.

Posted by on February 12, 2016 in Regulatory News, Uncategorized | 0 comments

Requirements

  • ALL RDFI’s MUST participate
  • Transactions NOT eligible for same-day activity
    • IAT’s
    • Individual transactions over $25,000

Phase One: Effective September 23, 2016

  • ACH Credits ONLY
  • Two new same-day processing windows in addition to current processing times
    • Submission deadline 10:30am ET, settlement 1:00pm ET
    • Submission deadline 2:45pm ET, settlement 5:00pm ET
  • Funds availability requirement
    • RDFI’s MUST provide funds to receivers by end of processing day

Effective Entry Date Requirements

  • Identified by using the current day’s date in the Effective Entry Date field in the Company/Batch Header Record
  • Example: Transactions originated on Monday, October 10 that are intended for same-day processing and settlement must have an Effective Date of “161010” in the appropriate field and be submitted to an ACH Operator no later than 2:45pm ET
  • Originated entries MUST meet the submission deadline for same-day ACH processing noted above
    • Same Day Entry Fees apply (currently 5.2 cents per originated same-day entry)
  • Additional optional same-day identification can be used for verification between the ODFI and Originator using the Company Descriptive Date as “SDHHMM”. SD denotes same-day processing intention and “HHMM” denotes either 1:00pm or 5:00 pm.  Ex: SD1300 or THIS IDENTIFICATION METHOD WILL NOT BE RECOGNIZED BY THE ACH OPERATOR.

Return Entry Processing

  • Same-day processing of return entries is at the discretion of the RDFI, even if the return was a same-day entry
  • Same-day return entries are exempt from the same-day entry fee
  • Return rules DO NOT CHANGE
    • A return entry must be processed in such time that it is made available to the ODFI no later than the opening of business on the second banking day following the settlement date of the original entry

Impact to Participants

  • RDFI’s
    • Update internal processing applications and procedures to accommodate same-day entries
    • Update file submission and delivery schedules with their ACH Operator
    • Ensure vendors and processors are prepared to handle same-day transactions, including allowing ample time for testing
  • ODFI’s that DO NOT elect to participate
    • Ensure the appropriate use of the Effective Entry Date to prevent inadvertently originating same-day ACH entries
  • ODFI’s that elect to originate same-day ACH
    • Update internal processing applications and procedures to accommodate same-day entries
    • Update file submission and delivery schedules with their ACH Operator
    • If applicable, talk with Originators to determine if they would like to have the advantage of same day origination and settlement. Discuss appropriate business need, cost effectiveness and the optional use of the Company Descriptive Date.
    • Determine fee schedule, if any, for Originators. Provide new fee notifications in the required amount of time.
  • ALL Financial Institutions should notify the appropriate department of the expected ACH billing changes

 

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