Posted by NationalACH on Mar 27, 2012
ACH, ACH payment processing, ACH network, ACH transactions

Same Day Settlements Approved Yet Few Banks Participate

Federal Reserve same day settlement for ACH transactions has been available for over a year.  However, very few banks have chosen to participate, making it extremely difficult for merchants to take advantage of quicker clearing of ACH payments.

The Electronics Payments Association, the governing body for for ACH payments, is now creating a new system for faster payment processing.  The proposed Expedited Processing and Settlement system (EPS) will go into effect on March 15, 2013, if it is approved by the members of the association. Approval will require the affirmative votes of two-thirds of the membership.

Banks Need to Jump Onboard

It’s obvious that banks and the ACH network must do something to speed up clearing of transactions.  We live in a real time world.  In order to stay competitive, the ACH system must find a way to modernize itself.

Banks no longer have the luxury of processing at their leisure.  Banks have to realize that paper checks are not the competition for electronic funds transfer.

Other methods of accepting payments are already significantly faster than ACH.  And allow merchants to ship goods without waiting a to be sure a check clears.


Banks are facing new competition from new systems that give consumers and merchants’ ways to accept payments quickly and without unnecessary risk.  EPS is a step in the right direction.  It will force banks to step up to the plate and provide real-time payment processing for those of us that live in the real world.

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