Project Description

Blue pen check-marking a listSame-day credits give Americans what they want most — the ability to pay and be paid faster.  This faster payment type is quickly showing great value for the most time-sensitive payments — payroll and taxes — which makes it an invaluable business continuity tool.

Preparing to originate Same Day ACH credits

If you plan to originate Same Day ACH credits, here are some things you need to do*:

  • Opt-in with your originating depository financial institution (ODFI) for the premium same-day service.
  • Use the correct effective date in your ACH batch header records.
  • Understand and meet the new same-day origination deadlines — there is one in the morning and one in the afternoon.
  • Involve your information technology team as needed:
    • You should inform or remind receivers that you are sending same-day transactions. Can this be set up in your system of record?
    • How will assignment of effective date, timing, use of same-day for some but not all batches, and other issues be handled within your system?

If you don’t plan to originate Same Day ACH credits, you don’t need to do anything. It’s business as usual.

Preparing to receive Same Day ACH credits

You don’t need to opt in to receive Same Day ACH credits. However, you do need to prepare your systems, customers, and trading partners.

  • Same Day ACH transactions will now post to your account no later than 5:00 p.m. local time. You may want to receive late-day information reporting files from your bank in order to stay current with your cash position and account balances. You may also want to consider late-day sweeps to investment accounts to maximize the use of the money.
  • Provide your vendors and trading partners with account restrictions related to Same Day ACH. For example: If funds are needed immediately to close a deal or release goods, instruct them to send a wire transfer instead of a Same Day ACH credit. You need such transactions to be final on receipt.
  • Review your accounts receivable updating procedures to ensure customer payments are shown as posted on the actual date they are received. This is especially important when time-sensitive discounts or late fees apply.

Consider returns

Returns can move faster under Same Day ACH because financial institutions can make use of the two new, earlier processing windows. ACH transactions may be returned same day, next day, or within two business days. Knowing this, you may want to receive multiple return deliveries from your banks.

For more information, contact your treasury management representative.

*Requirements may vary by financial institution.