A recent metamorphosis of the payments industry began with same day ACH (automated clearing house). ACH is basically the rails that connect banks and credit unions in the United States and allow payments to move between various accounts. Beginning last September, 2016, NACHA (National Automated Clearing House Association) adopted a rule to provide a new, “ubiquitous” capability for moving ACH payments faster. The rule was planned to occur in a three phased approach. Phase one, required a mandate for the ability to receive and process same day credits, and introduced additional processing windows for settlement times. Phase two, which is scheduled to go into effect September 15, 2017, required a mandate for the ability to receive and process same day debits – in addition to credits. And lastly, phase three, planned for March 2018, will make same day ACH funds sent before a specific cut-off window available to the payee by end of business on the same day.
Just as same-day ACH seems to be picking up steam and appears to solve the answer to all payment problems, we discover it’s not fast enough. We need faster – we need instant – we need real-time! The mobile-first, digital minded, technology hungry end consumer is doing everything else faster, therefore the way they pay is no exception.
Enter real-time payments.