1. ACH — 1.8 Same-Day ACH— Global FinTech

In the world of electronic payments, time is money. That’s where Same-Day ACH comes in, revolutionizing the traditional ACH network to process transactions multiple times a day. Let’s dive into the fast-paced world of Same-Day ACH and explore its key features.

The Need for Speed

Before Same-Day ACH, ACH transactions typically took 2–3 days to process. In response to customer demands and industry experts’ advocacy, NACHA, the governing body for the ACH network, introduced Same-Day ACH in 2015. This enhancement allows Originating Depository Financial Institutions (ODFIs) to send and settle transactions several times a day with any Receiving Depository Financial Institution (RDFI).

Use Cases Unleashed

Same-Day ACH opens the door to 63 potential use cases, offering speedy solutions for various scenarios. Some notable use cases include:

1. Swift Payroll Processing: Ideal for hourly or temporary workers, ensuring faster payments.
2. Urgent Claims and Refunds: Quick disbursement of insurance claims, disaster assistance, and various rebates.
3. Timely Bill Payments: Accelerated bill payments on or after the due date, providing convenience for consumers.

In 2021 alone, Same-Day ACH processed over 600 million transactions, totaling over $900 billion.

Navigating Cutoff Times and Limits

To keep the wheels of Same-Day ACH turning smoothly, understanding cutoff times and transaction limits is key:

1. Extended Operating Hours: As of March 19, 2021, Same-Day ACH operating hours were extended by 2 hours. ODFIs can now submit Same-Day files until 4:45 p.m. Eastern Time (1:45 p.m. Pacific Time) for same-day processing.
2. Flexibility with Transaction Limits: On March 18, 2021, Same-Day ACH saw a significant increase in its transaction limit, soaring from $100,000 to $1,000,000 per transaction. This expansion, coupled with the ACH Network settling payments four times per business day, enhances the versatility and adoption of Same-Day ACH.

How does Same-Day ACH Compare to Other Payment Types?

In a world where speed matters, Same-Day ACH emerges as a catalyst, offering businesses and consumers a secure and efficient way to move money. 💨💳 #SameDayACH #FastPayments #FinancialInnovation

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