Pub. 12 2015 Issue 3

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S 20 F rom the inception of the ACH Network in the 1970s, ACH transactions sent between financial institutions have always required a minimum of one business day to settle between financial institutions. However, the demand for enabling Same Day ACHhas become heightened due tomany factors including improved technological capabilities, the expansion of payment types supported by ACH, and similar capabilities that exist in other domestic networks and in other countries. These factors have resulted in expectations by both users and participants for a faster U.S. electronic payments infrastructure. As part of the ACH Rule development process to move to- wards faster payments capability, NACHA – The Electronic Payments Association, identified a number of “use cases” for same-day ACH, including: • Business-to-Business (B2B) Payments (i.e. trading partner, tax payments and remittance) • Person-to-Person (P2P) Payments (i.e. reimburse- ments, financial support, emergencies, loan repayments) • Account-to-Account (A2A) Transfers (i.e. consum- ers transferring funds between accounts at different fi- nancial institutions or to populate digital or mobile pay- ments) • Business-to-Consumer (B2C) Payments (i.e. same- day payroll, insurance claims, refunds, rebates, free- lance payments) • Consumer-to-Business (C2B) Payments (i.e. expe- dited bill payments, check conversion, merchant debits, collections) NACHA Adopts Rules Supporting Same Day ACH Processing Capability By William (Bill Schoch, President and CEO, Western Payments Alliance (WesPay)