Credit unions must be ready to receive same-day automated clearing house (ACH) credit transactions on Sept. 23, the NCUA reminded credit unions in a letter (16-CU-06) sent this week. The NCUA’s letter outlines steps credit unions should take for same-day ACH payments, and CUNA’s CompBlog also provides information in a recent entry.
According to the NCUA’s letter, moving funds more quickly will require credit unions to closely monitor intraday liquidity needs, and credit unions need to be aware of a potential increase in fraudulent activity.
Same-day ACH builds on existing next-day ACH network capabilities and establishes a new option for same-day clearing and settlement via ACH. Both ACH operators will begin delivering same-day ACH credit payments to receiving depository financial institutions (RDFIs) twice each banking day beginning Sept. 23.
The morning submission has a 10:30 a.m. (ET) deadline, with 1 p.m. (ET) settlement, and the afternoon submission has a 2:45 p.m. (ET) deadline with 5 p.m. (ET) settlement.
Under the new rules, originating depository financial institutions (ODFIs) have the option to send same-day ACH transactions to accounts at any RDFI, making participation in the rule for the receipt of same-day ACH payments mandatory for all RDFIs.
ODFIs must pay an interbank fee of 5.2 cents per transaction to the RDFI for each same-day ACH forward transaction. This fee will allow RDFIs to recover some of the costs associated with enabling and supporting mandatory receipt of same-day ACH transactions.
ACH operators will collect the fee on behalf of the RDFIs. The fee will settle between the ODFI and RDFI on a monthly basis.
There is no limit on the aggregate value of a batch of same-day ACH transactions,however international ACH transactions and single transactions greater than $25,000 are ineligible for same-day ACH processing.
Sept. 23 marks the start of Phase I of same-day ACH implementation.
Phase II, effective Sept. 15, 2017, allows same-day ACH debits and credits to be used. RDFIs should be ready to receive same-day ACH debits. Funds must be available at the end of the RDFI’s processing day.
Phase III, effective March 16, 2018, requires that funds from same-day ACH credits be made available by 5 p.m. in the RDFI’s local time.