What you need to know about same day ACH debits

What you need to know about same day ACH debits

These days, the new same day ACH (Automated Clearing House) rule is making the rounds. With this rule, merchants can receive funds as quickly as within 0 to 1 business days. However, before we go into the nitty gritty of same day ACH debits, let us learn about ACH as to what it is and how it works.

What does same day ACH means?

Same day ACH is a new rule brought out by NACHA (National Automated Clearing House Association), which manages the ACH network. According to this, the ACH payments will be processed within one business day, speeding up the payment process significantly.

This new rule will change 4 big things in the ACH process. These are:

  • First of all, the new rule will create a new entry window for banks and credit unions in order to differentiate same day payments in one batch file.
  • Thus, there will be two extra windows for the financial institutions or providers to submit an ACH file. Right now, the ACH file is processed only once during afternoon in every business day. However, after this new rule, the frequency will double in 2017 and subsequently triple in the year 2018 when one additional window opens.
  • The same day ACH rule requires every financial institution to get same day credits from 2016 onwards and thus same day debits from 2017 onwards.
  • All financial units must make give the payee the qualified same day funds by the end of the same business day.

What is ACH?

  • ACH, which is an acronym for Automated Clearing House, is a network that essentially connects credit unions and banks in the whole of the United States. This allows more than $40 trillion to move between several accounts. For instance, customers repay their credit cards, receive their weekly salaries through direct deposit, etc. through an ACH transaction. In the same way, businesses make use of ACH technology to move their billions of money every year on the backend.
  • Thus, ACH is a dynamic, ubiquitous, and cost-effective basic system that connects credit unions and banks in the United States. Although, this system is great, it also has potential to improve, just like every other thing.
  • One of the reasons why an ACH transaction takes time is because it depends on correct data and good funds between banks and credit unions. And the receiving & sending banks each have a day to return the transactions. And, if the payment details are wrong or if there are no funds in the accounts to be debited, then the financial institution can only issue roughly 80 ACH Return Codes or a change notification.

These things can thus cancel or delay the payment altogether. Therefore, the slow ACH process is not appreciated by a lot of people. However, with the same day ACH debits, your ACH transaction can now be processed really fast.

Important dates to note regarding same day ACH

  1. Phase 1: The phase 1 of same day ACH was rolled out in September 2016 for credits or payouts.
  2. Phase 2: The phase 2 of same day ACH will roll out in September 2017 for debits, payouts, or collecting payments.
  3. Phase 3: The phase 3 of same day ACH will roll out in March 2018, which will include a new settlement window.

Everybody wants to send & receive money quickly.  Same day ACH debits & credits lets you take advantage of faster payments.  Which is a great step forward in how ACH transactions are processed in

Do you want your business to benefit from the same day ACH debits & same day ACH credits?  Contact National ACH on 702-323-5761 or email us at info@nationalach.com.

In the Money Lending Business- Here’s What You Need To Know About Online Payments

Money lenders and loan servicing companies operate in trickiest part of the financial industry.  Not everyone can handle the higher risks and volumes associated with a lending business.

Whether you offer car title loans or payday loans, you probably deal with a lot of regulation and inherent risk. To survive in the industry, your operations need be streamlined and completely efficient.

The best place to start is with the infrastructure that allows your customers to pay you. Studies show that traditional forms of payment are on their way out. Plastic is simply more convenient than paying with cash. And paying online, directly from your bank account, is even easier than paying with a card.

Convenience is Key

Loan service companies and loan providers face pressure from both sides – government regulations and customer defaults.

The local authorities and regulators are tightening the rules around lending, which puts pressure on loan companies.

Meanwhile, a study in Texas found that over the course of a year, more than 54% of borrowers defaulted on their payday loans. A similar study in North Dakota found that 46% of borrowers had defaulted on their loans after 48 months. Here are the findings from that study:

  • To deal with this problem, loan companies must innovate and offer convenient solutions to help encourage payments from customers.
  • Moving payments online has the dual benefit of allowing loan companies to get access to bank accounts and making it easier for customers to payback their loans.
  • The most convenient platform for online lenders and loan companies is Automated Clearing House or ACH.

ACH Payments

The reason ACH payments are so popular with loan companies is because it offers unparalleled convenience for both borrowers and lenders. ACH payments platforms allow the lender to automatically draw out the amount owed on a daily, weekly or monthly basis.

Borrowers who sign up for the service can have their dues paid automatically over the period of the loan. A writer for the New York Times found that this system of ACH payments encouraged borrowers to be more disciplined. Borrowers are put under pressure to manage their finance more carefully so that they can have enough money in the account to meet their living expenses and the automatic withdrawals from loan providers.

The infrastructure around ACH payments is designed for high volumes and regular payments. Some providers even offer services to let lenders get paid by checks over the phone, mail or fax, using a virtual terminal.

Convenience isn’t the only reason ach payments are better for loan providers. The payment platform is massive and the network handles close to 90% of all electronic payments in the United States. The ACH network is also considered to be among the safest and most secure electronic funds transfers system in the world.  

A study by SAP found that automated payments through echecks are less prone to errors and fraud, since there is minimal human interference in the whole process.


ACH payments reduce costs, assure that payments are made on time, stablize revenue from recurring payments, and are safe & secure. This makes it the ideal payment solution for lenders and loan companies across the country.

Securing payments and offering convenience to customers will do more than just help your business survive.  It will help your business thrive. 

How are you accepting payments from your borrowers?

Contact us today

High Volume Merchant Accounts

Echecks Boost Profits for High Volume Merchants

High volume merchants discover that adding electronic check processing is one of the easiest ways to increase sales and profits.  

The ACH network the oldest and most reliable electronic payment method available in the United States. As the ACH network continued to expand over the years, it managed to preserve its versatility and dependability.

For high volume merchants, using ACH payments is extremely beneficial in converting shoppers to buyers. 

A Snapshot of the ACH Network

While the overall results for 2015 are still not in, the processing capability and outstanding potential of the ACH network are illustrated by the results of 2014. In April 2015, the National Automated Clearing House Association announced that in 2014, the ACH network facilitated 23 billion payments, which is a 1 billion increase compared with year of 2013.

The WEB transactions represent one of the most promising segments, as they went up by 10.2% in the same interval. The introduction of Same Day ACH will further improve the efficiency of the network by allowing all parties involved to move funds with the speed that is needed in our fast-paced modern times.

High Volume ACH Payments for Your Business

You will find multiple advantages in using ACH payments on your website. The popularity of electronic check payments among consumers results from the favorable way it compares with credit card payments.

Not having to provide card information introduces a degree of convenience that makes a great deal of difference when the customer reaches the checkout page. High volume merchants discover that the fees for ACH payments are considerably lower compared with the ones for credit card payments.

ACH payments provide higher security to both you and your customers through its low chargeback and fraud rate.

ACH payments are compatible with the increasingly popular subscription-based business models through its recurring payment option.


Once implemented, ACH payments make an enormous difference in terms of profits for high volume merchants.  

ACH processing accounts give you an affordable way to accept payments. And ACH merchant accounts are easier to obtain than card processing accounts.  

Offering your customers the ability to pay you with an ACH echeck on your website increases your sales while  lowering  your processing expenses.  

Are you interested in adding ACH echecks to your high volume merchant account?  

Contact info@NationalACH.com today.