WASHINGTON (7/2/15)--The Federal Reserve’s same-day automated clearing house (ACH) proposal has led to CUNA concerns about the effect of implementation and other costs to credit unions, particularly smaller ones.
While CUNA supports the idea of a faster payments system and the benefits that come along with it, concerns still remain, particularly with the mandatory participation requirement.
The membership of NACHA- The Electronic Payments Association approved a same-day ACH rule in May, and the Fed’s proposal would change the current optional FedACH SameDay Service to conform with NACHA’s new rule.
This includes requiring mandatory participation by receiving depository institutions (RDFIs) and an interbank fee paid by the originating depository financial institution (ODFI) to the RDFI for each same-day ACH forward transaction.
“CUNA strongly supports requiring an interbank fee to provide some relief for additional costs that will be imposed on RDFIs,” CUNA’s letter reads. “Credit unions and other smaller financial institutions are typically net receivers of ACH and would be able to use these fees to help offset some implementation and other costs of enabling same-day ACH.”
NACHA’s rule contains an initial interbank fee of 5.2 cents per transaction.
“We believe the NACHA interbank fee is necessary, and we urge the Federal Reserve and NACHA to evaluate further whether a higher interbank fee such as the one originally considered by NACHA is appropriate,” the letter reads. “This is particularly acute for credit unions that will incur higher implementation and ongoing costs relative to the small number of same-day ACH payments they will ultimately receive.”