Same Day ACH

To meet business needs in a fast-paced world, the National Automated Clearinghouse Association (NACHA) has implemented Same Day ACH. While standard ACH payments process on a next-day or two-day basis, Same Day ACH lets you initiate payments and receive funds faster.  

 

Advantages of Same Day ACH

Businesses and consumers can both benefit from Same Day ACH debits.

  • Faster business to consumer payments– Same day payroll, insurance payouts, emergency funds, or refunds.
  • Business to business payments – Improved settlement of payments between businesses for invoice processing and release of goods.
  • Consumer to business bill payments – Customers can make payments “due today” for their mortgage, car, utility, credit card, or other payments if offered by the Payee or business. This can assist with accelerated crediting of late payments.
  • Person to person payments – Sending emergency funds to a family member, payments to the babysitter, or for reimbursement of a shared expense can now be processed and posted even quicker to the person’s account.
  • Account to account transfers – Provides for faster movement of funds between accounts.

 

What you should know

  • Single transactions are limited to $25,000.
  • International ACH transactions are not eligible.
  • Additional fees are incurred to originate payments.
  • Cut-off times matter – Payments designated as Same Day received after the cut-off times will be processed and settled the following day.
  • To avoid overdrafts, funds should be in your account before you authorize any payment.

 

Same Day ACH FAQ

What is Same Day ACH?
Same Day ACH refers to same day processing of credit and debits through the Automated Clearing House( ACH ), allowing ACH transactions to post to an account the same day they are authorized.

Which ACH Payments are eligible for same day processing?
According to NACHA, 99% of ACH transactions are eligible for same‐day processing. Only international transactions (IATs) and transactions above $25,000 are not eligible.

Is there an additional fee for originating Same Day ACH payments?
Yes, Same Day ACH transactions cost more. There is a $20 fee per transaction. Cash management customers can opt-in to a monthly service for $10/month. Analyze your ACH transactions to determine those that would benefit from Same Day ACH.

What is Tioga State Bank’s Same Day ACH processing schedule?
Same Day ACH transactions can be processed Monday through Friday, excluding federal holidays. The deadlines for submitting Same Day ACH transactions are:

  • Cut Off: 10:00 am  – Post: 1:00 pm
  • Cut Off: 2:00 pm – Post: 5:00 pm

Note:  Financial Institutions are only required to post by 5:00 pm

Will consumers be able to send Same Day ACH transactions?
Yes, Consumers are able to submit a Same Day ACH transaction. However, TSB cash management customers also have the ability to opt-in to a service to have Same Day ACH turned on all the time.

 

To get started, call us at 1-888-4TSB (4872) or visit any TSB Office.