Same Day ACH payment processing just turned five years old. And while that may seem like the blink of an eye, the growth it has experienced is astronomical. Nacha reports that 1.3 million payments worth roughly $1.5 billion were processed in the first six days of September 2021.
That is a massive leap forward from the credits-only roots that started Same Day ACH. Let’s dive into that legacy a little bit.
Same Day ACH through the Years
Since its start in 2016, Same Day ACH has made annual enhancements that include “adding debits, expanding the hours to submit payments, and increasing the dollar limit for each payment,” according to Nacha.
Biggest Benefits of Same Day ACH
There are a ton of great benefits and standout advantages. Payroll is a big one – it helps employers by allowing them to hold onto the funds for a little while longer, and it helps the employees because you can have an ACH account through any financial institution, which makes things quick and easy.
We’ve all either heard or lived through instances of insurance or other policy payouts taking months or even years to reach recipients. The swiftness of the Same Day ACH system alleviates stress and brings peace of mind to recipients of insurance claims and disaster relief payments.
The State of Same Day ACH
In the second quarter of 2021, the ACH Network grew by nearly 10%, a sizeable feat in the still-struggling COVID economy.
For more on the impact of Same Day ACH, Nacha has two case studies for you: Paychex and ExcheQ.
But like most digital products and services, the ACH Network is constantly monitoring new threats and bad actors that may be working within it. Thankfully, these threats will not directly compromise the ACH Network or other payment systems, but rather they will “exploit vulnerabilities or gaps in the processes or procedures.”
Here are their current fraud threats:
2022 and Beyond
Over the last five years, Same Day ACH has made some big moves and created a faster payments experience while also setting the standard for payment processing excellence, through its enhancements and its perfect handling of hundreds of millions of dollars in Federal stimulus payments.
And with its extended hours, the ACH Network allows payments to be settled four times per day in the United States. They’ve come a long way from single, next-day settlements.
So what’s next? The current $100,000 per-payment maximum will be increased to $1 million in March of 2022. It looks like Same Day ACH is here to stay and will keep raising our expectations of great payment services.
Jump into the ACH World
ReliaFund has its own payment legacy – we are a leading payment processing provider with more than 110 years of combined service in banking and payment processing. If you are looking for an ACH payment processing provider, look no further.
Use ACH for payroll processing, subscriptions, memberships, and more – all while saving money and boosting efficiency.
Contact us to learn more.