WASHINGTON (7/14/10)—In just a couple of weeks, credit unions and other depository institutions can use a new Federal Reserve same-day automated clearing house (ACH) service, but they must opt-in to participate. In a new final rule analysis, the Credit Union National Association (CUNA) reminds credit unions that the new service goes into effect Aug. 2. To opt-in, depository institutions must execute a participation agreement with the Fed. CUNA notes that credit unions that opt-in may choose the extent of their participation and indicate whether they wish to:
* Send only; * Receive only; or * Send and receive same-day debit items.
CUNA notes that same-day settlement is limited to transactions that arise from consumer checks converted to ACH and consumer debit transfers initiated over the Internet and phone. Specifically, the “FedACH SameDay” service only applies to origination of non-government debit payments and includes only Accounts Receivable Entry (ARC), Back Office Conversion Entry (BOC), Point-of-Purchase Entry (POP), Telephone-Initiated Entry (TEL), Represented Check Entry (RCK), and Internet-Initiated Entry (WEB). The transmission deadlines and settlement times for the FedACH SameDay service are as follows: For "forward same-day debit transfers," the transmission deadline to FedACH is 2:00 pm EST and the posting time is 5:00 pm EST; for "return same-day debit transfers," the transmission deadline to FedACH is 4:30 pm EST and the posting time is 5:30 pm EST. Use the resource link below for more CUNA analysis of the Fed rule.