About Same-Day ACH
The payment landscape is evolving to meet the needs of consumers and businesses for faster payments. The launch of Same-Day ACH on September 23, 2016 gave businesses the option to send and receive domestic ACH credits of $25,000 or less the same business day.1 With Same-Day ACH, your business will have the ability to send and receive ACH payments faster than ever before.
Same-Day ACH is being rolled out in three phases:
Phase 1 - September 23, 2016
ACH Credits Only
All financial institutions must be able receive Same-Day ACH credits by the close of their business day. Origination of Same-Day ACH credits is optional for financial institutions.
Phase 2 - September 15, 2017
ACH Credits and Debits
All financial institutions must be able to receive Same-Day ACH debits by the close of their business day. Origination of Same-Day ACH debits is optional for financial institutions.
Phase 3 - March 16, 2018
ACH Credits and Debits
Receiving financial institutions will be required to make funds available to recipients by 5:00 p.m. local time.
MUFG is committed to following the Same-Day requirements with the launch of receipt of Same-Day ACH credits on September 23, 2016 and the receipt of Same-Day ACH debits on September 15, 2017. We now offer domestic Same-Day ACH credit origination, and we will begin offering Same-Day ACH debit origination in Q3 2018.
Same-Day ACH Benefits and Use Cases
Same-Day ACH builds upon the ACH Network's existing next-day settlement functionality and provides a new option for same-day processing and settlement of transactions.1 This creates a host of new benefits for your business.
- Expedited payments
- Improved liquidity
- Flexibility to make unexpected payments
- Reduced reliance on checks
Take advantage of Same-Day ACH in the following scenarios:
- Same-Day Payroll - faster payroll payments for hourly or temporary pay, bonuses, and emergency payments
- Invoice Payments - pay vendor invoices on or after the due date
- Urgent Claim Payments and Refunds - quick payouts of insurance claims and refunds
- Supplier Payments - pay your suppliers faster to receive your materials on time, while taking advantage of vendor discounts
Preparation for Same-Day ACH Debit Receipt
It is important that our clients are aware of how the receipt of domestic Same-Day ACH debits of $25,000 or less impacts your organization:
- Please understand that when you authorize a merchant, vendor, or biller to debit your business account with MUFG, the merchant, vendor, or biller should include information about the timing of the payment and may provide the option to collect the payment the same business day.
- If you have pre-authorized an electronic payment, such as a recurring utility or insurance payment, then very likely there will be no change to the time that these payments are posted to your account. As always, MUFG will receive and post these payments normally as designated by the transaction effective date.
- You should always have sufficient funds in your account to cover every payment you authorize or initiate. In addition, review your account balances and transactions online and review periodic account statements.
Preparation for Same-Day ACH Credit Origination
Since launching Same-Day ACH credit origination, we want to make sure you are aware of how to take advantage of the new service:
- Evaluate your current payments to determine how to take advantage of Same-Day ACH
- Analyze your payment processes to determine the impact on liquidity
- Be aware that the process to initiate a Same-Day ACH payment will be distinguished by marking the "Effective Entry Date" as the current business day's date2
- Note that we will require submission of Same-Day ACH payments by 12:10 p.m. ET (11:10 a.m. CT / 9:10 a.m. PT).2 Any payments received after 12:10 p.m. ET (11:10 a.m. CT / 9:10 a.m. PT)2 will be processed as a standard ACH payment.
- Ensure your ACH settlement account can cover Same-Day ACH payments
- Understand that Same-Day ACH origination will be a premium service and incur a higher processing fee than standard ACH origination3
Frequently Asked Questions
Click here for more details about Same-Day ACH
(1) Same-Day ACH credit transactions must be $25,000 or less and exclude International ACH Transactions (IATs).