Same-Day ACH Payment Processing Adds Up to $17 Billion


As part of an effort to speed electronic transactions, the National Automated Clearing House Association embarked on a program that implements same-day processing of Automated Clearing House payments.

The program, to be phased in over three stages, recently completed its first three months of operation with payments totaling about $17 billion during that period, which started Sept. 23, 2016.  More than 13 million electronic credit transactions, or about 194,000 a day, were made from Sept. 23 to Dec. 31, 2016, averaging $1,283, the association said.

“In its first three months of operation, Same Day ACH has proven that it is a valuable faster payment solution for a variety of users, including businesses, consumers, and financial institutions” said Janet O. Estep, president and chief executive officer of the association, known as NACHA. “We are encouraged by its performance thus far, and look forward to seeing Same Day ACH continue to provide value for its users in 2017.”

Direct deposit made up the greatest number of same-day ACH payments, 52 percent, with 6.8 million transactions, NACHA said. The transactions, which included emergency payroll and pension payments, totaled $5.9 billion.

Business-to-business payments made up 32 percent of same-day volume, with 4.1 million transactions totaling $8.8 billion.

Same-day payment processing through the automated clearing house was approved May 19, 2016, by the association's voting members. The members allowed for same-day processing of virtually any ACH payment, which allows employers, government agencies and consumers to quickly send funds. The members agreed to a three-stage phase in.

The goal of the program is to ease the ability of employers paying employers quickly and to streamline compliance with wage-payment requirements, especially for next-day termination pay. Nine states have requirements to pay discharged employees immediately upon termination, with limited exceptions: California, Colorado, Hawaii, Illinois, Massachusetts, Minnesota, Missouri, Montana and Nevada.

The second phase of the program involving debit transactions is to start Sept. 15, NACHA said on its website.

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