Posted by Bethany Frank on 25 Sep 2017
With both Phase 1 and Phase 2 completed as of September 15, 2017, the gradual rollout of Same Day ACH is nearly complete. Before the Same Day ACH option, businesses and individuals had to wait 1 – 2 business days for ACH transactions to be processed; they now have the option to send payments guaranteed to be received by the other party within the same day, as well as authorize funds to be pulled from a funding account on the same day. NACHA reported more than 13 million Same Day ACH transactions in the first 4 months of availability in 2016, and that number is expected to increase with the rollout of Same Day ACH debits.
Helping Your Customer
There are plenty of reasons a customer might run up against a bill due date or completely miss it. Customers already have the option to pay bills and invoices using Same Day ACH credits, but vendors and billers should also consider offering the Same Day ACH debit payment option. When speed is important, Same Day ACH debit allows customers to authorize billers to pull funds from an account on the same day the transaction is initiated.
Same Day ACH debits provide a safety net to customers who risk service disruption or cancellation due to late or missed payments. Offering the flexibility and security of Same Day ACH payments increases the likelihood of receiving bill payments on time.
Same Day ACH debits also make it easier for customers to quickly pay vendors and billers in case of an emergency, or to meet increased demand without causing delays in production. Vendors and billers can be paid simply by collecting checking account information and authorization. Same Day ACH debits are faster than cutting a check and sending express mail envelopes, and probably cheaper for your customers than sending a wire.
Better Financial Health
Same Day ACH debits can also help vendors and billers improve treasury metrics. For example, Same Day ACH debit means collections are moved forward one day without changing customer behavior, thereby improving cash flow and capital management. Same Day ACH debits can also reduce payment risk as returns for insufficient funds, etc., are received faster.
“Same Day ACH debit is a great payment option to offer your customers,” says Robert Unger, NACHA’s Senior Director, Product Management and Strategic Initiatives. “It provides customers convenience, and benefits vendors and billers too by reducing risk, speeding collections and helping customers to easily make emergency and rush payments.”
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