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What You Should Know About Same Day ACH: 5 Questions With… Robert Unger, Senior Director – NACHA

The Receivable Savvy 5 Questions With… format allows us to pose some of the most challenging questions we receive across multiple platforms such as webinars and conferences and receive answers from some of the industry’s most knowledgable subject matter experts.  In this entry, we discuss Same Day ACH with Robert Unger, Senior Director – NACHA, administrator of the ACH Network.

  1. What is Same Day ACH?

The Same Day ACH payment is an optional payment method that buyers and customers may use, where payments sent “today” to suppliers will be received and credited “today.” This differs from “classic” – or traditional – ACH, where a payment initiated “today” will be received and credited by a supplier “tomorrow.” Both classic and Same Day ACH are great electronic payment options.

  1. Why would a buyer choose to send a Same Day ACH payment?

Typically, buyers will send Same Day ACH payments for emergency, off-cycle, or other situations where the speed of payment is important, and a payment has to be made “today.”

  1. Can Same Day ACH be used for any payment?

Same Day ACH is an option for almost every credit payment that can be sent by “classic” ACH. The exceptions are that transactions must be under $25,000, and the U.S. government does not accept Same Day ACH payments at this time. In addition, Same Day ACH debits are currently excluded and will be available in September 2017.

  1. What are the most important things supplier organizations should know if interested in incorporating Same Day ACH?

It is important to know that, while Same Day ACH is an optional payment method for sending payments, businesses that receive ACH payments are required to receive Same Day ACH payments in addition to “classic” ACH payments. What that means is that organizations currently accepting “classic” ACH payments cannot opt out of accepting Same Day ACH. Accounts Receivable professionals, or others responsible for managing customer payments for their organization, should connect with their internal financial staff in order to understand the requirements of Same Day ACH payments.

  1. Will the credit be assigned the same day as the payment for Same Day ACH?

The supplier must provide credit to a buyer “today” for a Same Day ACH payment. Businesses should assess how this requirement may impact payment receipt, cash application and customer service processes.

Bonus Questions:

Bonus Question 1.

Is there a cost differential between accepting “classic” ACH payments from customers and receiving Same Day ACH payments? Are there additional fees?

NACHA does not set any fees for businesses. Businesses should consult with their financial institution and/or payment processors regarding fee questions.

Bonus Question 2.

If my organization is already set up for receiving ACH payments, is it a significant undertaking to now accept Same Day ACH payments?

It could be the case that receiving Same Day ACH payments will not have any impact. However, businesses should consult with internal stakeholders, as well as financial institution and payment processing partners to ensure that a Same Day ACH payment can be received and credited “today.” To provide further guidance, NACHA is offering the “Same Day Essentials Guide for Businesses” free at https://www.nacha.org/content/corporate-relations

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