On September 23, NACHA's new Same Day ACH rule will go into effect. This new rule will enable the same-day processing of ACH payments ($25K limit) through two new clearing windows: a new morning submission deadline and a new afternoon deadline. Silicon Valley Bank will have specific time deadlines for same day processing. Those deadlines will be communicated to clients well in advance of the implementation date.
This rule change will allow urgent payments to be processed the day they are due and make it easier and faster to process standard ACH transactions. SVB's clients will also be able to respond better to emergencies, make off-cycle payments (e.g., reimbursements) and correct errors in employees' pay and tax deposits.
Three Rollout Phases
Starting this September, the rule changes will be implemented in three phases over the next three years.
1. Effective September 23 2016, ACH credit transactions will be eligible for same-day processing for situations such as hourly payroll, person-to-person payments and same-day bill pay.
2. Effective September 2017, Same Day ACH debits will be added—allowing for a variety of bill payment scenarios like utility, loan and credit card payments.
3. Effective March 2018, funds from Same Day ACH credit transactions will be available for withdrawal by 5:00pm of the local time of the receiving bank.
We're Here to Help
We will reach out to our clients in the coming weeks with more information to help understand and prepare for the implications of making Same Day ACH a reality.
This is a big step towards making payments faster for SVB's clients. Please contact your SVB Global Treasury and Payments Advisor with any questions.