Quicker is better for many things, from drive-thru service to internet connection. One thing that nearly every business relies on are ACH payments, and sadly, sometimes it can takes days to get your funding. The current plan allows vendors to receive their funds within 48 hours, barring any holdups. For the betterment of the industry, NACHA just passed a resolution to allow same-day payments, though there are a few catches.
As with all good things, there are strings attached. First, there are two time periods for the same-day payment allowances. The first cut-off is 10:30am, which allows for a deposit at, or around, 1pm. The second deadline occurs at 3:30pm, with a deposit at or around 5pm. As long as the payments are in before these periods, you should not have any issues receiving your funds in the allotted period. Another plus comes in the form of payroll. This new ruling also allows for payroll that is submitted by the same time periods to be direct deposited by 5pm the same day.
This program is great for merchants, as ACH electronic payments are something that the majority of small business merchants rely on. However, the downside is that these changes are going to be implemented one at a time – starting in 2016. Same-day payments on ACH payments concerning person-to-person payments, and same-day bill pay will be implemented in September 2016. In September 2017, same-day ACH debit payments will be processed, and in March 2018, same-day ACH credit transactions will be allowed. While that seems like a long time away, it will be here before you know it, and you need to make sure that your processor is ready for these changes.
All processors are not created equal, and if you have been in the industry long enough, you know this is true. Some claim to work for the merchant, when in reality they have sub-standard service and are lax on new regulations. You need to take the time to learn about your processor, and if you need to change, do so. It is one of the most important business decisions you will make.