President & CEO
Have you noticed payments are processing faster?
With the implementation of “Same Day ACH” on September 15th, some payments that used to take three days to post to your account may now be complete in just hours.
What Has Changed?
A new system was implemented by financial institutions across the country to speed up the transfer of funds. With the new system, many “pending” ACH transaction time have been shortened to just a few hours—so you can always be clear on what you have available to spend. What this means for you is no more tied up funds, or watching your account wondering when a transaction will post. Not all payments use “Same Day ACH”, but the transition will occur rapidly over the next year.
It is important to note that this also means the cushion of time between an ACH originating and processing will be gone, and you’ll want to carefully monitor your balances to ensure sufficient funds to cover transactions at all times.
What are ACH Transactions?
ACH stands for Automated Clearing House—it’s another way to move money paperlessly, and operates independently of credit and debit cards. Essentially, anytime you move money by providing your account number, and financial institution’s routing and transit number, you are probably making an ACH transaction.
Some examples are:
- A payment that you make at a biller’s website that is deducted automatically from your checking account.
- A transfer that you initiate between your accounts at different financial institutions.
- Any transactions that require a voided check to initiate payment.
What Do I Need to Do?
While the speed of “Same Day ACH” transactions will help you maintain a clearer picture of your finances, the change may take some getting used to. Kings Federal recommends getting in the habit of checking your balances daily and always assume a payment you are making will clear almost immediately.