Same day ACH payment systems, like the UK’s Faster Payments, are being installed world-wide. In Asia a recent survey by Treasury Today showed that similar systems were being implemented in Singapore, Australia and India. The USA has just announced a second try at developing such a system
NACHA, the organisation that manages the automated clearing house (ACH) network in the US, have announced that it is taking steps to bring ubiquitous, same-day ACH settlement to the US.
Over the past year, NACHA has been outlining the parameters and requirements of a same-day capability for the ACH network. Currently, the network only allows for single, next-day settlement. But through a 'phased approach', NACHA plans to introduce multiple, same-day settlement options that would be available for virtually any network transaction.
NACHA is proposing incremental functionality that would include multiple, new settlement windows, and greater certainty around faster funds availability. The first implementation phase would enable same-day ACH credits for payroll, person-to-person (P2P) payments and expedited billpay. The second phase would introduce same-day ACH debits and enable consumer bill payment for utility, mortgage, loan and credit card payments. The third phase is aimed at improving the service level across the ACH Network and reducing counterparty risk by adding a second same-day settlement and accelerating funds availability.
“The concept of phased implementation is the result of thoughtful exploration of feedback we received over the past year,” said Estep, NACHA’s president and CEO. “This is the next step to help create a rule proposal for the industry to enable same-day ACH through the NACHA rule making process.”
In an effort to inform future rule making, NACHA is launching a study to assess costs and potential transaction volume for same-day ACH. The study will attempt to gauge what receiving same-day payments will cost receiving depository financial institutions (RDFIs), and will explore ACH volume potential through detailed interviews and inputs. The information gathered will inform rule making that NACHA believes could occur as early as this autumn.
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