With both same-day ACH credits and, since September 15, 2917, same-day ACH debits available in the marketplace, this faster form of ACH is finding applicable use cases in both business and consumer applications according to a new research report.
The National Automated Clearing House Association (NACHA), the governing body for ACH, has from time to time rolled out new features to broaden ACH’s appeal across channels, most recently faster, same-day transaction processing services. The author’s latest research report, Same-Day ACH Debit’s Debut, examines the impact that Same Day ACH (SDA) is having on the payments market.
"ACH, a stalwart among payment types, has again created greater utility by adding a new feature, namely faster transaction processing options. How Same Day ACH fits in among other types of more rapid payment options and how relative market pricing evolves will be critical to users and providers," commented Sarah Grotta, Director of Debit Advisory Service and author of the report.
Highlights of the report include:
- A review the initial results of the launch of same-day credits, rolled out last year
- Discussion of the most common use cases that have emerged from the introduction of SDA credits
- Prediction of the likely uses of ACH debits, made available on September 15, 2017
- Analysis of the impact SDA may have on other legacy payment methods, including wire transfers
- Consideration of the fraud concerns inherent with SDA
- Conclusions regarding SDA’s impact on real-time payment initiatives.
1. Executive Summary
3. Activity Affected
4. SDA Credits Receive a Standing Ovation
5. How Will SDA Debits Perform?
- Minding the Effective Date
- Impact to FIs’ Wire Business
6. Fraud: An Ever-Present Concern
7. Conclusions: The Next Act for Same Day ACH
List of Figures and Table
Figure 1: Same Day ACH Transactions, Q4 2016-Q2 2017
Figure 2: CHAPS vs. BAC with the Introduction of Faster Payments in the U.K.
Table 1: Attributes: Wire Transfer vs. Same Day ACH