Same-Day Debit Payment Processing Now Available for Businesses

10/5/2017 1:51 PM

Virtually all automated clearing house payments are eligible for same-day processing now while businesses may still face some issues with adopting the technology.


Payment processing for the third-party collection industry saw another improvement in September with the addition of same-day automated clearing house (ACH) debit payments.

Same-day credit payments took effect in 2016 and, with the addition of the debit payments, businesses have the ability to process virtually any ACH payment, according to the National Automated Clearing House Association (NACHA).

NACHA implemented new same-day payment processing technology in phases to allow financial institutions and businesses to acclimate to faster processing systems, according to a news release from NACHA.

The new technology gives businesses and consumers the ability to initiate and settle transactions received in just a matter of hours—a huge jump from the two to three days it can take for standard ACH transactions to clear, ACA’s Collector magazine editor Anne Rosso May previously reported.

There is demand for electronic payment processing from consumers and businesses.

Results from a survey by Credit Research Foundation in partnership with NACHA released in June show the use of checks is declining while electronic payments are on the rise.

“Credit and account receivables professionals anticipate that ACH transactions will surpass checks as the leading form of payment received from business customers by 2020,” according to a news release on the survey. “Currently, checks account for almost 50 percent of payments (down from 63 percent in 2014); ACH 32 percent (up from 22 percent in 2014), cards 11 percent (up from 8 percent in 2014), and cash and wire 8 percent (up from 7 percent in 2014). By 2020, respondents anticipate that ACH will account for 45 percent of payments, checks 34 percent, cards 12.5 percent, and cash and wire 8.5 percent.”

With the exception of international transactions and high-value transactions that are more than $25,000, virtually all ACH payments are eligible for same-day processing, according to NACHA.

However, based on the survey results from June, businesses still may have some issues with respect to adopting ACH payment technology.

Barriers include having customers that are not capable of sending ACH payments, according to 45 percent of respondents. “Another 34 percent say that their customers can send ACH payments, but do not properly send remittance with the payment. And another 21 percent suggest that their organizations do not have the proper systems and/or resources to effectively use ACH,” NACHA reports.

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