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Payments to Clear Faster

Payments to Clear Faster

Changes in the rules for Automated Clearing House (ACH) credits and debits will go into effect September 15, 2017. Once these changes begin, virtually all types of electronic payments for both credits and debits may be processed on the same day that they are originated. This will speed up the payment system, which is a great benefit when you are receiving a payment. However, this also means that when you are making a payment, it will now clear faster. 

Here are a few same day payment examples:

  1. Business-to-Business payments: Enabling faster settlement of invoice payments between trading partners that also includes remittance information with the payments.
  2. Expedited bill payments: Using both ACH credits and debits enables consumers to make on-time bill payments specifically on due dates. It will also provide them faster crediting for late payments. An example of this would be calling into your cell phone company (or going to their website) to authorize a payment and the transaction posting to your account that same day.
  3. Account-to-Account transfers: Faster crediting for consumers who move money among various accounts they own.

What does this mean to you?

It will be important to make sure funds are available in your account for payments you make online or via telephone to avoid incurring NSF fees. Float times will be greatly reduced, if not eliminated altogether. 

If you have any questions, please contact us.

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