HOW IS SAME DAY ACH AFFECTING B2B PAYMENTS

HOW IS SAME DAY ACH AFFECTING B2B PAYMENTS

Same Day ACH rolled out at the end of last year. The point of same day ACH is the ability for a company to send an ACH payment to another company and it will be received and debited that same day. For many companies experiencing slower payments, this is a dream come true. Now that same day ACH has been around for about six months, we wanted to check back in and see how B2B businesses are benefitting from same day ACH.

NACHA, the electronic payments association, created a way for financial service providers to differentiate same day ACH from regular ACH payments. Two windows exist for the ACH payment to be initiated, requiring financial institutions to receive same-day credits and receive same-day debits this year. The transaction maximum implemented for same day ACH payments is $25,000.
Since same day ACH was rolled out, more than 13 million transactions have taken place with nearly a third of them occurring as B2B payments. Those 13 million transactions totaled about $17 billion, also attributed to B2B payments. Same day ACH seems to be very popular among B2B businesses and doing very well.

With all of these transactions and dollars floating quickly through the system, some may worry that more fraud will be occurring. However, NACHA has reported the complete opposite. ACH payments are verified to ensure transactions are secure. NACHA surveyed 23 financial institutions who used same day ACH and found that no one was reporting increased fraud since using same day ACH.

Overall, it seems that same day ACH is finding a lot of success. For companies that need to collect faster, this offers an opportunity where collectors can call late paying customers and ask for an ACH payment to go through the same day, reducing their average days late. With same day ACH, companies may see reduced days sales outstanding and improved cash flow.

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