Using an automated clearing house to process a variety of financial transactions is a common way for many businesses to operate. From companies who pay their employees via direct deposit, to transactions made by consumers at point of sale kiosks, ach payments are popular because they are both streamlined and efficient.
However, a common challenge is the fact that ACH payments often take some time to be completed. In most cases, this is no longer than a day or two. However, shortening the amount of time between when a transaction is made and full completion would provide a major benefit to businesses of all kinds.
However, it seems that the Electronic Payments Association is in the process of proposing a viable alternative.
Same day ACH payments coming soon
According to the NACHA website, last year the organization proposed the implementation of same day ach processing. The working theory is that the sooner funds are made available to payees – regardless of whether it is an individual or a business – it is better for the entire electronic payment processing ecosystem.
For example, citing data from a survey taken by the American Payroll Association which polled more than 1,500 payroll specialists, 97 percent stated that same-day ACH service would be a value-added offering to their organizations, while 86 percent said that this process would have much more beneficial uses for their companies beyond payroll processing and payments.
"APA members overwhelmingly support the concept of Same Day ACH settlements, which will allow businesses greater flexibility when making payments and correcting errors and to maintain compliance without reverting to paper checks," said Dan Maddux, who serves as the American Payroll Association's executive director.
While corporate payroll professionals and businesses may be behind same-day ACH processing, rapid and sweeping changes wouldn't be the most effective and efficient approach. Instead, the NACHA is suggested the use of a phased implementation strategy.
This method would serve as a testing ground for the efficiency of the three daily settlement window times the NACHA has proposed: the early morning, midday and the evening.
They payment processing industry is undergoing a variety of changes to streamline the amount of time it takes to complete certain financial transactions. Expect same-day ach payments to be a hot topic of discussion as well as gain mainstream acceptance once it has been implemented fully.
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