Banking Operations, Including Payroll, Will Soon Get Faster
Whether it’s direct deposit, invoice transfer or invoice payment, most financial transactions take at least a couple of days. However, this is about to change.
Financial institutions process transactions through the Automated Clearing House Network or ACH. More than $ 41 trillion moves between the network annually, according to Bloomberg, and banks sync their accounts with ACH only once a day, so it takes a couple of days to pay bills, and transfers from one bank account take days. to another, and salaries will be sent to your account the next day after they are sent.
However, banks now have to sync with the network three times a day to receive payments, which allows them to receive money the same day they are sent. Bloomberg reports that more than 95% of top US financial institutions plan to offer same-day settlement to their customers. They report:
Starting this month, banks should be able to credit the account for same day payments sent from another bank. After a year, banks will be able to withdraw money from the account on the same day it is requested. This should be helpful for consumers who want to pay utility bills, credit cards, insurance companies and mortgage companies and make sure their money arrives the same day. By March 2018, all one-day ACH payments should be available for withdrawal by the end of the business day.
The change also makes it easier for employers to make payroll errors. With the new system, they can fix these issues and make sure employees are still getting paid on time. NACHA , the ACH administrator, has an entire resource page dedicated to this change. You can check it out at the link below, as well as the full article on Bloomberg.
LIVES THE SAME DAY ACH FOR LOANS | START via Bloomberg