Same Day ACH: Phase 2 Has Been Rolled Out

Phase 2 of the Same Day ACH Has Been Rolled Out!

 The world is continuously developing, advancing and evolving; every day there is something new and innovative popping up. Now, with the way the digital environment is progressing, it is encouraging everyone to get involved and join the digital revolution. So, taking into account the rise of digitalization, everyone constantly wants things quicker and faster. Companies who offer a speedier payment service are prospering more than their competition.

Same Day ACH

This is why the National Automated Clearing Housing Association decided to launch its same day ACH debit payment method, which is segmented into three phases. Phase 1 was rolled out last year, and was designed to make credit payments smoother; this received fantastic support and despite some concern regarding fraud and other issues, no hiccups occurred. One of the main factors as to why phase 1 was so positive is due to the research done by the NACHA and the Regional Payments Associations. This ensured that the organizations involved understood exactly what was going to change.

Phase 2 commenced recently, September 15 to be precise, and it makes financial organizations accept same-day debit payments. So, this means financial institutions now have the tools to authorize faster credits and faster debits. However, it was heavily advised that both banks and companies do the research on ACH phase 2, as they make be very surprised by the changes.

Laura Steele, who is the president and CEO of the Regional Payments Association ePayResources, had the following to say… “People aren’t going to complain if you put money into their account too early, but you can rest assured people will complain, and probably complain pretty loudly, if you take money out of their accounts before you’re authorized to do so.”

This was referring to the entry date of transaction being incorrect. Banks are now putting steps into place to ensure any unintended same day ACH debit payments are avoided. However, it is important that companies also ensure that the date of transaction is listed as when they want the money to be taken out of the account; this way the huge advantages of the same day ACH debit can be capitalized on without any problems arising.

Same day ACH debits will prove to be a tremendous addition to the payments and commerce industry, as being able to make payments faster is a big attraction. Of course, the success of this current phase 2 will rest on the amount of unintended same day transactions and any other issues, but these have so far been kept to a minimum. Ross McKay, a senior vice president at TD Bank, stated, “I don’t think it will be revolutionary, but I think it will be another incremental improvement to the [payments] ecosystem.”

The final phase of the same day ACH payments will launch on March 16, 2018, and will make mandatory credit available before 5pm. Although, whether financial institutions and companies buy into phase 3 will be determined by the overall success of phase 2.

Contact Us:  If you are experiencing difficulty in getting approved for a high risk ach processing.  We can help.

High Risk Merchant Account LLC
915 Folly Road, Suite 49
Charleston, SC 29412
1-877 493-4622

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