Traditional methods of ACH payment settlement functioning from a single, next-day settlement are soon to be a thing of the past. In a release earlier this week, the Electronic Payment Association (NACHA) has launched the initial phase of its plan to implement same-day settlement capability. Eventually, multiple payment options for ACH transactions will be available for same day settlement.
Multi-Phase Approach
The implementation of the first phase will encompass same-day credits for important cases such as payroll, person-to-person payments and expedited bill payments. Same-day ACH debits will be rolled out in the second phase, allowing users options for bill pay on utilities, loans and credit card payments. The third is going to improve security by reducing counter-party risk. In addition, a second same-day settlement will be added while also increasing the speed that the funds will be available.
The multi-phase introduction of the plan will allow increased responsiveness of the ACH Network in tiers, allowing a fully functional foundation to develop. It will also allow businesses time to prepare for full implementation of the new technology.
Keeping Pace With Demand
Ultimately, providing increased functionality with more timely access to funds will allow businesses to keep up with the continual advances in other aspects of technology. As the demand for such things continues, it will be interesting to watch the landscape of automated payment options change. As these changes are implemented, studies will be done on implementation costs, capabilities and volume. These studies will be used to inform future rule-making, potentially as early as Fall 2014.