March 19th is a big day for the Automated Clearing House (ACH) network. This date marks the scheduled start of the next Same Day ACH expansion. This rule provides an additional two hours for item submission each day, allowing for a third submission window. Items input into the Fed by 4:45 pm ET (3:45 CST) will be distributed by 5:30 pm ET (4:30 CST) with a settlement of 6 pm ET (5 CST).
What changes will you have to make as a bank to accommodate for this new ACH window? Start by reviewing NACHA Section 3.3: Timing Requirement for RDFI to Make Credit and Debit Entries Available.
Another thing to keep in mind, all same day credits must be made available to your customers’ accounts no later than 5:00 pm bank local time. This may require your bank to change its End of Day processing time, in order to ensure the third window ACH transactions will be posted before you end your day and cut over to the next business day.
If you are an IDS On-Time bank and have your End of Day segment ran before 4:30 pm CST, please reach out to us so we can discuss a new time to process your bank to ensure you are in compliance with NACHA rules as of March 19th 2021.
For more information in regards to this new same day window, please consult your Regional Payment Systems Association, Federal Reserve or NACHA.
About Automated Systems, Inc.
Since 1981, Automated Systems, Inc. has been a leader in providing innovative core banking, digital banking, and data processing solutions to community banks nationwide. An array of integrated applications provide partnered banks with tailored, cost-effective, competitive choices. ASI delivers industry-leading technology backed by unparalleled in-house conversion, training and support teams; paving the way for progressive, top-notch customer service. ASI corporate headquarters are located at 1201 Libra Drive, Lincoln, NE 68512, 1.800.279.7312. For more information about banking solutions from ASI, visit www.asiweb.com.
About Insite Data Services
IDS data application hosting services combines secure and cost-effective core banking applications, enterprise-class servers and storage, and proven virtualization technology. IDS hosts all of the bank’s servers in secure data centers that use state of the art security systems including identity verification and biometric scanning. Insite Data Services also offers IDS On-Time, a full-service solution dedicated to back-office bank processing. These operations experts allow partnered banks to focus on their most important asset, their customers. For more information visit www.insitedataservices.com.