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After the industry rejected a 2012 plan for speedier electronic payments, its authors made two key changes designed to win over banks that would have borne costs without seeing many benefits.
May 19 -
Faster payments have a lot of benefits and one big downside. A new electronic payments system could make it easier for people to unwittingly send money to scammers and harder for fraud victims to get their money back.
September 17 -
The Federal Reserve Board Thursday said that it is taking public comment on whether to require member banks to move to same-day payments after an industry group voted to mandate faster payments among the nation's 12,000 financial institutions.
May 21 -
Same-day payments will be a big improvement for business-to-business transactions, but banks are still bound to lose market share to technology firms that are taking the complexity out of the payments process.
June 5 -
The plan calls for the implementation of two new same-day settlement windows by March 2018. Fees that banks and credit unions will pay each other to cover the cost of the upgrades have been decreased.
May 19 -
There is a leadership void in payments innovation. The Fed has the ability and the historic precedent to take up the mantle.
March 12
The Federal Reserve Board has approved enhancements to its automated clearing house service that will require its banks to process same-day payments.
Morning settlements should be cleared by 1 p.m., and afternoon settlements by 5 p.m., according to the approved plan. Originating banks will be required to pay a 5.2-cent fee to receiving banks for each same-day electronic payment.
"Same-day ACH is a game-changer, as it will enable new options for consumers, businesses and government entities that want to move money faster," Janet Estep, chief executive of Nacha, said in a Wednesday news release.
Same-day payments also "will serve as a building block for enabling payments innovation in the development of new products and services," Estep said.
Nacha, in Herndon, Va., is the bank industry group that oversees the ACH network. Nacha's membership
The interbank fee is meant to help offset costs of implementing same-day transactions, including upfront investments needed to immediately accept, post and make funds available.
Payments now tend to be settled the day after a transaction takes place. The FedACH SameDay Service is optional to financial institutions both on the sending and receiving ends of payments transactions, although
The changes emulate those of Nacha's Same Day ACH rule, which was approved in May and followed by a Fed comment-seeking period. Both the Fed rule and Nacha's rule will go into effect Sept. 23, 2016.
