Same Day ACH and the Future of Faster Payments
Published: October 14, 2014
NACHA President and CEO Janet O. Estep describes how expedited bill payments, payroll applications and many ad-hoc business payments would benefit greatly from Same Day ACH.
The financial industry is working to make payments better, more efficient, simpler — and faster. Many Americans are particularly invested in efforts to achieve this last improvement. A recent Federal Reserve study found that 69% of consumer payers and 75% of business payees prefer instant or one-hour payment speed. The key question for all users is what functionality will be required to meet Americans’ needs: validation of good funds, settlement of funds, or actual funds availability in a user’s bank account?
The automated clearinghouse network sits at the epicenter of this dialogue. As the backbone for electronic payments, it supports over 80 million ACH payments each day, including direct deposits and direct payments. It also enables settlements for credit and debit card transactions and ATM transactions. By speeding up processes within this ubiquitous foundational system, we can better meet the needs of the industry...