On May 19, NACHA, the folks who make the rules that govern direct deposit and ACH transactions, approved same-day payment processing through the automated clearing house.
The new ruling will have a huge effect on payroll departments, because this will mean that practically any ACH transaction can be processed in a much shorter time period than ever before.
For ages, payroll departments have been told to submit direct deposit files to their banks 24 or 48 hours before the funds could show up in employees’ accounts. This new ruling should significantly shorten that window. Same-day ACH clearing and settlement will provide much greater flexibility and many new options to employers and employees because funds will be available for quick transmission.
Same-day ACH changes will become effective starting September 2016.