NACHA to Phase in Same-Day Settlement
March 20, 2014
On Tuesday, NACHA announced its intention to improve the ACH payments network by enabling same-day settlement. The industry body that sets standards for and manages the U.S. ACH payments network said it seeks to move the current process, which provides for next-day settlement at best, to one that provides multiple same-day settlement options for “virtually any ACH network transaction.”
The organization said it will take a phased approach to implementing same-day settlement, starting with payroll, P2P and expedited billpay payments. After implementing solutions for those use cases, NACHA said it will move on to ACH debits and consumer bill payments for things like utility, mortgage, loan and credit-card payments.
“NACHA has conducted extensive work over the past year to outline the parameters and requirements of a ubiquitous, same-day capability for the ACH Network that enables financial institutions, large and small, to provide value to their end-users,” said Janet O. Estep, president and CEO of NACHA. “A phased implementation enables us to introduce new capabilities more quickly, and then continue to build over time, creating value for all participants at each step along the way.”