Same Day ACH

Same Day ACH — Moving payments faster.

You may see a change in the way automatic debits clear your account, due to the second phase of the Same Day ACH rule enacted by the National Automated Clearing House Association (NACHA). NACHA administers operating rules for Automated Clearing House (ACH) payments processed by financial institutions, including Credit Union of New Jersey (CU of NJ). The first phase of this rule was effective September 23, 2016 and concerned ACH credits. This second phase of the Same Day ACH rule allows for same day processing of ACH debits. ACH debits include electronic payments, automatic drafts, paper check conversions, or any electronic withdrawal from your account utilizing CU of NJ’s routing and transit number. Once this rule is in effect (September 15, 2017), any ACH debit can clear on the same day it is initiated. For example, if you write a check at a retailer and it is converted into an electronic payment, it can clear the same day it is written. Previously there was a delay that would create a “float” time for processing.

Please take this rule into consideration when you have ACH debits deducted from your account. CU of NJ has no control over when the ACH files are received and you may need to make changes to ensure funds are available in your account to cover your automatic debits. If you have automatic drafts, such as your water bill, power bill, cable bill, etc., this would be a good time to review your agreement with the service provider and verify the effective date of your payment, as it will be deducted from your account on that day. If you have questions about how the new Same Day ACH rule can affect your automatic debits, please contact us at 609-538-4061 or by email: memberservices@cunj.org and we will be happy to assist you.

What are the benefits of same-day electronic payments?

Many merchants and billing companies may offer you the option to make a same-day electronic payment, such as to pay a bill or to transfer funds. If you agree, then the funds might be debited from your account as soon as that very same day. For example, if you have a bill due on the 25th of the month, the billing company might allow you to call or use its website on the morning of the 25th to make an on-time payment, and also have the funds debited from your account on the 25th. While these types of payments won’t be reflected on your account balance as quickly as your debit card and ATM transactions, you will have access to more accurate information about your actual available account balance more frequently throughout the business day.

These electronic debits are commonly known as Direct Payment, Direct Debit, ACH Debit, Electronic Check or e-Check, and similar terms. They are different from your debit card payments and ATM transactions.

What Members Should Know

1. Members should understand that when they authorize a merchant or biller to debit their account with their financial institution, the merchant or biller should include information or a statement about the timing of the payment. If the merchant or biller offers the member the option to make a same-day payment, it might be referred to as a same-day payment, or noted that the merchant or biller intends to collect the funds as quickly as possible.
2. If members have pre-authorized an electronic payment, such as a recurring mortgage or insurance payment, then very likely there will be no change to the time that these payments are posted to their account. As always, members’ financial institutions will receive and post these payments normally as designated by the transaction effective date.
3. Members should always have sufficient funds in their account to cover every payment they make, authorize, or initiate, and they should frequently review their account statements and transactions.

Credit Union of New Jersey offers a number of products and tools, including our mobile app, e-banking and Touch Tone Teller to ensure that you have your account information available anytime, anywhere. Additional products include our free Bill Pay, Mobile e-Deposit and Zelle.