Same Day Processing of Electronic Debits

Same Day Processing of Electronic Debits Effective September 15, 2017

We want to inform you about an upcoming ACH processing change that may affect your checking or savings accounts. A new ACH network rule allowing for the same day clearing of debits processed by financial institutions will go into effect on September 15, 2017. Starting that date, your electronic debits may be deducted from your account on the same day. This includes any of your payments made by check conversion (mobile/electronic check payment), Internet or by telephone. Please read the questions and answers below for a better understanding of the changes.  

What is ACH?

ACH, or Automated Clearing House, is a national electronic network that moves funds between financial institutions on behalf of their customers. Since the network’s creation in 1974, ACH funds moved “next day” or business day after order. Advances in technology and an increase in market demand for faster payments have resulted in the introduction of “same day” of order payments through the ACH network. “Same Day” ACH constitutes one of the most significant changes for the ACH network in its 40-plus-year history.

What is Changing?

On September 15, 2017, both electronic ACH credits and ACH debits to your checking or savings account may post the same day if so ordered by the originating party. For ACH Debits, this can result from a purchase you make with a check that is “converted” by the payee to an ACH electronic debit, a bill you pay on a company website or a purchase you make from a company over the telephone. Funds can be debited from your account on the same day as the date the transaction was effected.

How Does This Affect You?

Previously, you may have noticed that your payments might take as long as 1-3 days to clear from your account. Now these payments have the capability to clear (be debited) from your account on the same day. We urge our customers to please take into consideration this quicker processing option for all automatic payments deducted from your account to ensure sufficient funds are available. Now is a good time to verify the effective date of your automatic payments with your service providers, as the funds may clear from your account that day.

What are the Benefits of Same Day ACH Debits?

The conversion to “Same Day ACH’ will enable you to make easier on-time bill payments. It will also provide faster crediting when your transactions involve moving money between accounts that you have at different financial institutions. Similarly, business to business payments will process more quickly– providing faster processing of invoices and payments.