- What is Same Day ACH?
Late in 2016 NACHA implemented new operating rules for its' member banks to install a process for receiving banks (RDFI's) to not delay (until later that night) posting of credits (beginning Sept 2016) and debits (beginning Sept 2017) for transactions that they receive from originating banks (ODFI's) prior to 2 pm EST where such file is designated as a "Same Day" file. Currently, debits and credits are typically transmitted in the evening by 6 pm PST so this new Same Day ACH process greatly speeds up posting of items at the receiver's bank.
- Will Secure Payment Systems ("SPS") offer Same Day ACH?
Yes, SPS currently offers Same Day ACH processing for credits thru one of its ODFI's and anticipates adding another ODFI by Sept 2017. Currently, ODFI's are not required to participate in sending of same day files. On the other hand, RDFI's are required to process same day files that they receive from ODFI senders.
Are returns required to be sent back during the Same Day window?
No, returns are not required to be sent back by the RDFI's as Same Day returns, regardless of how the original entry was transmitted (same day or next day). As such, we will continue to post returns when we receive them from our ODFI's during the same morning processing window.
Do I automatically have the capability to now use this?
Yes, but you must request the capability from SPS noting that at the current time this is for Credits only. Please note the information below.
Do I have to sign up for this additional service?
Yes, as we will need your agreement via a contract addendum that any credits we receive from you prior to the Same Day file cut-off time of 10:30 am PST will be considered a "Same Day" file, regardless of whether or not the file was meant for Same Day processing, and be transmitted early to our ODFI for Same Day processing as well incur the additional per transaction surcharge referenced below.
Is there additional processing cost to utilize this?
Yes, there are additional ACH network fees charged by the Receiving Depository Financial Institutions (RDFI's) to cover the additional balancing and reconciliation expense. Please contact SPS for pricing details on the one-time set up fee and per item surcharge SPS will charge to cover each Same Day origination request.
Are there limitations on the types of transactions I can run?
Yes, transactions > $25,000 are ineligible as well as IAT (international) transactions where credit funding is ultimately destined via a U.S. intermediary for non-U.S. recipient accounts. We are not yet actively supporting sending of same day debits through our sponsor banks. We hope to have this supported by at least 2 of our banks within the next 90 days, however, no sooner than September 15th. Similar to Same Day Credits we will require a minor contract addendum to enable Same Day Debits for you.
Are there early batch close "Cut-Off" times that I need to adhere to? And if so, how do I do that?
Yes, if you are operating in an API or batch environment then simply signing up for the service and closing your batch prior to the Same Day Cut-Off time of 10:30 am PST will be all that you need to do. We will also need to have your account approved at a participating "Same Day" capable ODFI if you are currently placed with one of our ODFI's that does not support Same Day ACH.
If you are operating in a POS terminal environment then you will need to manually close your batch prior to the Same Day Cut-Off, or we can change our database to automatically "host close" prior to the cut-off.
If you are using the achXpress WEB- based platform then Same Day capability does not exist given the system operates on a nightly batch update process. However, if enabled on our host then the Same Day capability will eliminate the 1-day processing delay that exists today for achXpress customers.
How does this benefit my business?
Same Day originations are not for everyone and is completely optional. You are not required to send Same Day transactions and most merchants will not have a need for this. Examples of SPS clients most likely to benefit from this are payroll companies (employers forgetting to add an employee or correcting a payroll error), insurance companies (disaster relief), or even payday loan companies (customer cannot wait until tomorrow or electricity will be shut off). If you think that Same Day credits may apply to your business then by all means contact SPS Customer Service or your independent sales agent for more details on how to sign up.