Did you know that your payments are now moving faster?
Thanks to Same Day ACH, payments that once took up to three days will now be complete in just hours.
What Has Changed?
What this means for you is no more tied up funds, or watching your account wondering when a transaction will post. With the new system, “pending” ACH transaction time could be shortened to just a few hours—so you can always be clear on what you have available to spend.
It is important to note that this also means the cushion of time between an ACH originating and processing will be gone, and you’ll want to carefully monitor your balances to ensure sufficient funds to cover transactions at all times.
What are ACH Transactions?
ACH stands for Automated Clearing House—it’s another way to move money paperlessly, and operates independently of credit and debit cards. Essentially, anytime you move money by providing your account number, and financial institution’s routing and transit number, you are probably making an ACH transaction.
Some examples are:
- A payment that you make at a biller’s website that is deducted automatically from your checking account.
- A transfer that you initiate between your accounts at different financial institutions.
- Any transactions that require a voided check to initiate payment.
What Do I Need to Do?
The national ACH network will be updating to Same Day ACH on September 15.
While the speed of Same Day ACH transactions will help you maintain a clearer picture of your finances, the change may take some getting used to. UMassFive recommends getting in the habit of checking your balances daily.
For more information on the change to Same Day ACH, contact a friendly UMassFive representative.