The Automated Clearing House (ACH) is essentially the network that connects banks and credit unions in the United States, allowing over $40 trillion to move between various accounts. This is how consumers receive their weekly salaries via direct deposit or repay their credit cards.  How does the money get there?  It’s not a check, it’s not a credit card.  It’s an ACH transaction.

Currently, most ACH transactions, or payments, are settled on the next business day.  However, there is a new regulation starting on September 15, 2017, so that payments (both debits and credits) will be processed on the same day they are transmitted to the credit union.

For credits coming into your account, such as payroll deposits, this could mean faster access to your funds.  But for debits coming out of your account, such as bill payments, this could mean your account will be debited on the same day, which is faster than before.

Here are a few benefits of Same Day ACH:

1. Same-day payrolls, supporting business’ needs to pay hourly workers, and providing flexibility for late and emergency payrolls and miss deadlines; and enabling employees to have faster access to their pay;
2. Expedited bill payments, using both ACH credits and debits, enabling consumers to make on-time bill payments on due dates, and providing faster crediting for late payments;
3. Business-to-Business payments, enabling faster settlement of invoice payments between trading partners, and including remittance information with the payments;
4. Account-to-Account transfers, providing faster crediting for consumers who move money among various accounts they own.

As a valued member of Fort Billings FCU, we want you to be aware of any changes in regulations that might affect you, or your family.  As always, should you have any questions about Same Day ACH, or any other financial matter, simply call us at 856-423-1469 and we’ll be happy to help you answer all of your questions or concerns.