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Customers now see Same-Day ACH debits across their accounts.  This is the next step in a process that began in 2016, which is streamlining the way customers access their funds.

Background

As part of an effort to improve and modernize the U.S. payments system, the financial industry has been moving toward processing faster payments for their customers. In September 2016, the first phase toward faster payments was taken with the implementation of Same-Day ACH deposit transactions.  This step allowed ACH deposits to be sent and received on the same business day.  Previously, this was a two-day process.

In September of this year, the second phase toward faster payments began with the implementation of Same-Day ACH withdrawal transactions. This step may change the timing of when you see certain electronic withdrawal payments posted to your account(s).

Many merchants and billing companies may offer you the option to make a same-day electronic payment, such as to pay a bill or to transfer funds. If you agree, then the funds may be withdrawn from your account as soon as that same day.

For example, if you have a bill due on the 25th of the month, the billing company might allow you to call or use its website on the morning of the 25th to make an on-time payment.  Your funds will then be withdrawn from your account on the 25th.  While these types of payments will not be reflected on your account balance as quickly as your debit card and ATM transactions, you will have access to more accurate information about your actual available account balance more frequently throughout the business day.

What you should know

  • Understand that when you authorize a merchant or biller to withdraw from your account, the merchant or biller should include information or a statement about the timing of the payment. If the merchant or biller offers you the option to make a same-day payment, it may be referred to as a same-day payment, or noted that the merchant or biller intends to collect the funds as quickly as possible.
  • If you have an existing pre-authorized electronic payment, such as a recurring mortgage or insurance payment, it is likely there will be no changes to the timing these payments are posted to your account. These transactions will continue to post to your account(s) using the originally designated effective date.

Sufficient funds should always be available in your account(s) to cover every payment you make, authorize, or initiate. Frequently review your account statements and transactions to verify when payments are posting.