WASHINGTON (3/19/14)--NACHA--The Electronic Payments Association is planning a phased approach to reforms that would create a ubiquitous, same-day automated clearinghouse (ACH) settlement system.
The planned change would move the payment system from the current single, next-day settlement system to multiple, same-day settlement options that would be available for virtually any ACH network transaction, NACHA said in a Tuesday release.
NACHA plans to study the costs and transaction volume such a system could create. "The information gathered on implementation capabilities, costs and volume will then inform rulemaking that could occur as early as fall 2014," NACHA said.
NACHA said it is planning to introduce multiple, new settlement windows, and greater certainty around faster funds availability.
In the first phase of implementation, users will be able to provide same-day ACH credits for payroll, person-to-person payments and expedited bill pay.
In the second phase, NACHA plans to introduce same-day ACH debits and allow same-day payment of utility, mortgage, loan and credit card bills.
In a third phase, NACHA said it would focus on improving the level of service across the ACH network and on reducing counter-party risk by adding a second same-day settlement and by accelerating funds availability.
The phased-in approach to these changes will allow NACHA to introduce new capabilities more quickly, and then continue to build over time, creating value for all participants at each step along the way, NACHA President/CEO Janet O. Estep said.
"The Credit Union National Association and its payments subcommittee continue to meet and work with NACHA on payments and same-day ACH issues. We expect additional updates in upcoming months," said Dennis Tsang, CUNA assistant general counsel for regulatory research.
For the full NACHA release, use the resource link.