Same-day ACH FAQ

• What is Same-Day ACH?
  
  Same-Day ACH is a payment system that enables customers to send and receive funds using ACH on the same day the payment is created. This is in contrast to standard ACH payments, which are processed the next business day. However, while the receiving bank receives the payment on the same day, they are not obligated to post it immediately. Unit cannot enforce same-day posting by the receiving bank, and they may have internal cutoff times for processing.
  
  
• What are the benefits of using Same-Day ACH?
  
  Same-Day ACH offers faster payment processing, benefiting time-sensitive transactions. For businesses, it can improve cash flow management and reduce the risk of late payments.
  
  
• What are the limitations of Same-Day ACH?
  
  
  • Cut-off Times: Same-day ACH payments must be initiated before specific cut-off times to be processed on the same day.
  • Maximum Payment Amount: Each Same-Day ACH payment cannot exceed $1,000,000
  • No Guarantee of Same-Day Deposit: While Same-Day ACH aims to deliver payments to receiving banks on the same day, the actual posting time to the recipient's account depends on the receiving bank's internal processing procedures.

• Potential for Delays: 

• Receiving Bank Cut-off Times: Even if the receiving bank gets the payment file from the Federal Reserve before their cut-off time, they might not post it until the next day.

• Manual Review:  Your source mentions that Unit may flag certain Same-Day ACH debits for manual review, which can cause delays if not completed before the cut-off time. This adds another layer of complexity to the potential for delays.
• Risk Management: Financial institutions have risk management procedures that might delay Same-Day ACH payments, particularly those flagged as potentially fraudulent.

• What are the cut-off times for Same-Day ACH submissions through Unit (Thread)?
  
  Unit has two cut-off times for Same-Day ACH submissions: 10:00 AM EST and 3:00 PM EST. 

Payments submitted before these cut-off times should be completed by the expected arrival times of 1:00 PM EST and 5:00 PM EST, respectively.

Here are some examples to illustrate how the cut-off times affect Same-Day ACH processing:

Example 1:

• A Same-Day ACH payment is initiated at 9:45 AM.
• Unit includes this payment in the 10:00 AM file sent to the Federal Reserve.
• The receiving bank receives the payment on the same day.
• The actual posting time to the recipient's account depends on the receiving bank's internal processing procedures.

Example 2:

• A Same-Day ACH payment is initiated at 4:15 PM.
• This payment will not be included in the 4:00 PM Same-Day ACH file.
• Unit will send this payment in the next business day's file.
• The receiving bank will not receive the payment until the next business day.
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• To maximize the likelihood of same-day settlement by the receiving bank, send Same-Day ACH payments before 10:00 AM EST. However, it's important to note that Unit cannot guarantee same-day posting by the receiving bank.
  
  
• How does Same-Day ACH affect the clearing period for ACH debits?
  
  Same-day ACH can shorten the time it takes for an ACH debit to post to the receiving account by one day. The clearing period for Same-Day ACH debits starts on the same day the debit is initiated, rather than the next day as with standard ACH debits.
  
  
  

Here's an example:

• Standard ACH Debit:
  
  
  • Day 0 (T0): A standard ACH debit is originated.
  • Day 1 (T+1): The ACH debit posts to the receiving account. The clearing period begins.
  • Day 4 (T+1+3): Funds are debited from the receiving account after the three-day clearing period.

• Same-Day ACH Debit:
  
  
  • Day 0 (T0): A Same-Day ACH debit is originated.
  • Day 0 (T+0): The ACH debit posts to the receiving account. The clearing period begins.
  • Day 3 (T+0+3): Funds are debited from the receiving account after the three-day clearing period.

Note: This example assumes all payments are submitted before the Same-Day ACH cut-off times.

• What happens if a Same-Day ACH payment is submitted after the cut-off time?
  
  Regardless of when the item is created, it will have a Same-Day Configuration tag and will be sent in the next file, either around 10 AM or 4:30 PM EST. However, we cannot guarantee processing by the RDFI, so for urgent items, it's advisable to choose the earlier time window.
  
  
• Does Unit guarantee that Same-Day ACH payments will be posted by the receiving bank on the same day?
  
  No, Unit cannot guarantee that Same-Day ACH payments will be posted by the receiving bank on the same day. The receiving bank may have its own cut-off times and processing procedures that could delay the posting of the payment, even if they receive the payment file from the Federal Reserve before their cut-off time.
  
  
• What is the cost of Same-Day ACH compared to standard ACH?
  
  Same-day ACH payments typically have a different cost compared to standard ACH payments. While still considered a relatively low-cost payment option, the exact cost can vary depending on the financial institution and the specific transaction details.
  
  

How can I contact Unit if I have further questions about Same-Day ACH?

You can contact Unit's customer support for further assistance with Same-Day ACH transactions.