Same-Day ACH and Electronic Debits
Effective September 15, 2017
As a benefit to our members, we would typically process direct deposit funds into their accounts as soon as we received notification of the expected deposit. Often times this would end up being earlier than the scheduled posting date. On September 15, 2017, the National Automated Clearing House Association (NACHA) changed the rules to include additional Same Day Settlement options.
Due to these changes; employers, financial institutions, and government agencies may elect to send their files within a different time frame than they have done traditionally. This can impact the date Peopleβs Community Federal Credit Union receives direct deposit files, which then impacts the ability to post funds early. While we may no longer be able to credit direct deposits early, your funds will still post by the pay date listed on your check.
We apologize for any inconvenience this may cause.
Also, certain electronic debit payments have had a change in settlement times. These electronic debits are commonly known as Direct Payment, Direct Debit, ACH Debit, Electronic Check or e-Check, and similar terms. They are different from your debit card payments and ATM transactions.
What are the benefits of same-day electronic payments?
Many merchants and billing companies may offer you the option to make a same-day electronic payment, such as to pay a bill or to transfer funds. If you agree, then the funds might be debited from your account as soon as that very same day. For example, if you have a bill due on the 25th of the month, the billing company might allow you to call or use its website on the morning of the 25th to make an on-time payment, and also have the funds debited from your account on the 25th. While these types of payments wonβt be reflected on your account balance as quickly as your debit card and ATM transactions, you will have access to more accurate information about your actual available account balance more frequently throughout the business day.
What you should know
- You should understand that when you authorize a merchant or biller to debit your account, the merchant or biller should include information or a statement about the timing of the payment. If the merchant or biller offers you the option to make a payment effective the same day, it might be referred to as a same-day payment, or noted that the merchant or biller intends to collect the funds as quickly as possible.
- If you have pre-authorized an electronic payment, such as a recurring mortgage or insurance payment, then very likely there will be no change to the time that these payments are deducted from your account. As always, we will receive and post these payments normally as designated by the transaction effective date.
- You should always have sufficient funds in your account to cover every payment you make, authorize, or initiate, and you should frequently review your account statements and transactions.
- Frequently Asked Questions - ACH Direct Deposits and Same-Day Debits
What is ACH?
ACH (Automated Clearing House) is an electronic network for financial transactions in the United States. ACH transactions include direct deposit, payroll and merchant payments.
What is NACHA?
NACHA (National Automatic Clearing House Association) is a not-for-profit trade association that manages the development, administration, and governs the operating rules and business practices for the nationwide network of ACH transactions.
Why has NACHA implemented this new rule?
This rule enables ACH originators the ability to move ACH payments faster. This includes same day processing of debit and credit ACH transactions.
Why did Peopleβs Community Federal Credit Union make this change?
As a member of NACHA and based on regulatory requirements, we were required to make this change.
Does this apply to all banks and credit unions?
Yes. All financial institutions must comply with the new ACH and payment processing rules.
When did this take effect?
This change took effect September 15, 2017.
Does this change affect deposits and withdrawals?
This change impacts ACH deposits as well as certain electronic debit payments commonly known as Direct Payment, Direct Debit, ACH Debit, Electronic Check or e-Check, and similar terms. These are different from your debit card payments and ATM transactions.
How may this impact the posting of my payroll direct deposit?
With the adoption of the NACHA Rule, we may not receive direct deposit files early to post them. Your payroll direct deposit may not be received to post to your account until your actual pay date.
What will happen if I have automatic withdrawals scheduled based on receiving my deposit early?
You will need to modify your automatic payments based on your expected direct deposit dates determined by your employer or depositing agency.
Will this change impact my Social Security deposit?
Your Social Security direct deposit may not be received until your actual pay date to post to your account.