“Since the initial adoption of Same Day ACH, business users of ACH have been asking for enhancements,” according to Jane Larimer, CEO, NACHA.

One of those enhancement requests includes increasing the dollar limit of Same Day ACH transactions and now that request will be put into action.

Effective March 20, 2020, the dollar limit for Same Day ACH transactions will increase from $25,000 to $100,000.

According to feedback provided by EPCOR members during our Special Industry Update webinars and shared with NACHA in our comment letter responding to the proposal, this is a change that is necessary and generally appropriate.

So, now what? What are the next steps for EPCOR members?

The dollar limit increase from $25,000 to $100,000 will apply to both Same Day ACH credits and Same Day ACH debits, enabling ACH end users to make greater use of Same Day ACH and opening up several use cases that financial institutions should consider sharing with their account holders.

While the current limit of $25,000 covers approximately 98% of ACH transactions, only approximately 89% of B2B or business-to-business transaction are currently eligible for Same Day ACH. Businesses utilizing ACH for claim payments which are often for larger dollar amounts and time-sensitive in nature may especially benefit from the dollar limit increase.

The Association for Financial Professionals (AFP) has also stated that business users and cash/treasury management professionals have expressed experiencing a challenge with the $25,000 limit on Same Day ACH transactions.

Some use cases that end-users and financial institutions offering Same Day ACH should consider include:

• Paying federal taxes;
• Streamlining the homebuying process; and
• Making claim payments.

We will be covering this Same Day ACH enhancement, including potential use cases, during our one-day 2019 Payment Systems Update seminars this February through April at over 50 locations spanning the EPCOR footprint. To find the seminar nearest you, click here.