There’s a great enhancement coming for companies that take advantage of Same Day Automated Clearing House (ACH) and send or receive high-dollar payments.
Nacha has approved a proposed rule to increase the Same Day ACH dollar limit to $1 million per payment.
According to Nacha, this has been a frequently requested change from ACH users. And the organization says this move will make more payments eligible and hopefully increase adoption of Same Day ACH.
The new rule “reflects our commitment to see that the modern ACH Network meets the nation’s needs for fast and efficient payments,” said Jane Larimer, President and CEO of Nacha.
In terms of payment type, the new rule will apply to all Same Day ACH entries (i.e., customer payments, business payments, credits and debits). Nacha believes the higher limit will be especially useful for things like insurance claim payments, payroll funding, business-to-business payments and tax payments.
Expanding your reach
The good news is, you have some time to prepare your company. The new rule won’t take effect until March 18, 2022.
That said, it’d be smart to let your finance staffers know about the new rule soon. That way, everyone can prepare.
With a higher limit, your company may want to switch certain trading partners that didn’t previously qualify for Same Day ACH to this payment method. A/P and Payroll could look over your master vendor file and records to see what flexibility this expansion will give you with specific payees. And on the A/R side, your team may want to assess its payers and consider receiving more payments via Same Day ACH.
By doing this upfront work, your finance team will be all set to go when the rule becomes effective next March.
