Same Day ACH: Your Automated Payments Could Clear Earlier Than You’re Used To
Over half of TFCU members have authorized outside companies or financial institutions to deduct payments for their regular bills directly from their TFCU checking account. Due to a processing change made available by the National Automated Clearinghouse Association (NACHA), the national electronic payments association, those outside companies and financial institutions can now withdraw those funds from your account in one day, where it used to take at least two. People who have automated payments set up may find their payments coming out of their account a day earlier than in the past. For example, if your agreement with your insurance company is to deduct your premium each month on the 10th of the month, but you’re used to seeing it come out on the 11th or 12th, it could actually clear your account on the 10th when this change becomes effective.
NACHA, the governing body that controls rules connected to how businesses process electronic transactions, has made available Same Day ACH, or same-day automated payment processing, effective September 15, 2017. That means the automated payment could be taken out of an account and credited to the receiving business on the same day, instead of the next day, which is current standard practice. This also applies to any checks you write that get processed as electronic payments.
If you have automated payments set up, you don’t have to do anything because of this new option. We just want you to be aware of the potential for your payments to start coming out a day earlier than you may be used to. The date you originally set with your payees would be the date the payment comes out for any companies that choose to do Same Day ACH.
Same Day ACH has nothing to do with any TFCU account-to-account payment transfers you may have set up within Home Branch.