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Same-day Processing of ACH Debit Payments & What You Need to Know

Same-day Processing of ACH Debit Payments & What You Need to Know

At United Bank, we take every step necessary to make sure you are always kept up-to-date on important changes that are happening at the Bank and across the banking industry to ensure your banking experience goes uninterrupted.
 
Therefore, we wanted to notify you that starting September 15, 2017 a new industry-wide rule, considered Phase II of the “Same Day ACH Rule Change”, will go into effect where the Federal Reserve will begin processing certain ACH (Automated Clearing House) debit payments ($25,000 or less) on the same day they are authorized by accountholders. This simply means that any automatic electronic payments you’ve set up with merchants, as well as any electronic check payments you make during the day, will potentially come out of your account faster.
 
Phase I of this new rule, which included the timing of ACH credits posted to customer accounts, took effect in September 2016. With Phase I and Phase II complete as of September 15, 2017, virtually all types of ACH payments, including both credits and debits, will be eligible for same-day processing.
 
So here are answers to common questions we anticipate you will have regarding the Same-day ACH Debits Rule Change that goes into effect on September 15:
 
What are ACH debit payments?
ACH (Automated Clearing House) debit payments are electronic payments that are created when a customer gives an originating institution, corporation, or other customer (originator) authorization to debit directly from their checking or saving account for the purpose of bill payment, transfer funds, etc.
 
What are Same-Day ACH Debits?
Due to a change in operating rules by the National Automated Clearing House (NACHA), the Federal Reserve will begin processing certain ACH debit transactions on the same day they are authorized by you, the accountholder. Therefore, certain electronic debit payments – such as automatic payments set up with merchants and electronic check payments you initiate – may post to your account the same day they are made. This rule change applies to retail banking and commercial banking customers.
 
When should I expect same-day payments to start?
Same day ACH debits will go into effect on September 15, 2017 for both retail and commercial banking customers.
 
Are there any exceptions to Same-day ACH Debit payments?
Yes. Same-day ACH debit payments only includes transactions that are $25,000 or less. This rule change also does not apply to any international ACH transactions.
 
What are the benefits of Same-day ACH debits?
Specifically for retail and commercial banking customers, it modernizes the current system by giving you more accurate information about your actual available balance frequently throughout the same business day and makes it easier for bill payments to be processed fast and on-time.
 
What do you mean when you say they will come out of my account faster?
It means your automatic debit transactions that you initiate could be debited from your account the same day. It’s a rule change that applies across the banking industry, not just at United Bank.
 
Are there any helpful tips I should know once Same-day Debit payments go into effect on September 15?
  1. Electronic payments you initiate will come out of your account faster, so always make sure there are sufficient funds in your account to cover all of your authorized transactions to prevent overdrafts.
  2. You may want to consider applying for our Overdraft Line of Credit program that provides financial backup whenever you overdraw on your account.
  3. Use online banking and our mobile app to frequently check on the status of your deposits, payments and any other transactions.
We hope this information prepares you for the start of same-day processing of ACH Debit payments on September 15. In the meantime, if you have any questions or comments not included here, please contact our Customer Care Center at 1-866-959-BANK (2265).