The Federal Reserve has announced that effective April 1, 2013, it will offer an expanded FedACH SameDay service for same day clearing of ACH transactions. Faster funds availability and reduced fraud are just some of the benefits billers can gain with same day settlement on ACH entries.
Currently, the earliest settlement for standard forward items, referred to as "next-day" service, occurs on the morning of the banking day following the processing day that an item is received by FedACH Services. The expanded service will feature the following modifications:
- Applies to converted check payments (ARC, BOC, POP, and RCK) as well as TEL and WEB debit payments
- Allows credits as well as debits
- Accommodates business as well as consumer transactions
- Places no dollar limits other than those set by NACHA on check-conversion transactions
FedACH SameDay Service may be utilized by FedACH customers only and is available on an opt-in basis for ODFIs and RDFIs. As more and more financial institutions implement this service, the US payments system will become increasingly more efficient.