On Friday (Feb. 6), The Clearing House (TCH) and the Consumer Bankers Association jointly filed a comment letter in support of NACHA’s proposal to enhance the ACH network by establishing ubiquitous, same-day ACH processing and settlement capability.
The proposal in question balances the needs of Originating Depository Financial Institutions (ODFIs) and Receiving Depository Financial Institutions (RDFIs) by taking into account the benefits and costs of same-day ACH. It recognizes that customers originating payments – which would derive the most value from faster ACH clearing and settlement – would be most likely to pay ODFIs for same-day ACH services, while customers receiving payments – which do not control the timing or speed of ACH transactions – would not be likely to pay RDFIs for a same-day service. Because the cost of implementation would fall primarily on RDFIs, the proposal includes a per-entry interbank fee paid by an ODFI to the respective RDFI of a same-day transaction.
“This comprehensive proposal established the incentives necessary to help ensure financial institutions of all sizes have the ability to better meet consumer and business needs by taking advantage of same-day ACH capabilities,” said Dave Fortney, senior vice president for Product Development and Management at The Clearing House. “The proposal responsibly seeks to establish a phased-in approach and provides the functionality and flexibility necessary to accommodate customers no matter what time zone they are in. Adoption of same day ACH settlements will complement TCH’s real-time payment system initiative. Together with existing ACH capabilities, same day ACH and real-time payments will provide new, distinct payment options for customers."
“The proposal lays out a well-balanced plan to begin the process of bringing the U.S. payment system into the 21st century,” said David Pommerehn, vice president and senior counsel for the Consumer Bankers Association. “Establishing a sound system for same-day ACH clearing and settlement is an essential step in moving payments faster. We believe the proposal will ultimately provide a wide range of benefits for consumers and businesses alike."