There were some concerns when NACHA proposed Same day ACH clearance last year. Today, with the deadline approaching on September 15, 2017, banks and businesses are unequivocally certain about the benefits. A recent NACHA survey result reports a favorable reception for Same Day ACH rule. About 92 percent of respondents are ready to originate same day debit transactions and 100 percent were ready to receive Same Day ACH on the decided date.
At NACHA Payments 2017, Same Day ACH has underpinned several innovative changes to deliver an engaged digital payment experience for all the customers. Organizations are adding new intuitive interfaces with added functionality to drive a seamless payment system. With new start-ups on the ascendant, FI’s are leveraging cloud delivery to augment the existing infrastructure. Efficient support services and streamlining of B2B transactions are in focus to remove the system pain points. Banks are investing on new CRM software, messaging apps and mobile apps to enable real time communication and support to all customers.
Financial institutions and banks are also scaling up their core infrastructure to incorporate these evolutionary changes. Same Day ACH are the building blocks for the future real-time payments infrastructure and banks need to revamp their existing legacy structures to incorporate these evolving shifts in the industry. Payment modernization companies with niche expertise like lien waiver or high volume-low value transactions are making their presence felt with innovative applications.
Same Day ACH has had a positive impact on the payments industry. Businesses now can utilize a pre-integrated ACH network for swifter credit payments with much lower transaction costs. Large businesses with significant cash movements could retain cash positions for at least a day longer, delivering them additional interest revenue, and almost nullifying the ACH credit payment cost. Same Day ACH is of significant value for SMEs that do not have the volumes to negotiate a preferential wire transfer rates. Even retail consumers can use the ACH credit route to make last minute bill payment and avoid high card charges and delayed payment penalty.
There is no doubt that Same Day ACH has enabled banks to move to an agile payment eco-system with added focus on fraud detection, regulatory reporting and risk management. With innovative technologies and digitization, banks and businesses can leverage the added visibility and cash flows to create new revenue streams to augment their offerings.
Evolvus Flux is compliant with Same Day ACH and also offers proprietary and ISO8583 support. Highly scalable with a robust micro service architecture, Flux is amenable for enterprise level integration and provides file level encryption for comprehensive security.
Balaji is the co-founder and Chief Executive Officer of Evolvus Solutions Pvt Ltd. He plays a critical role in anchoring strategic priorities for the company to gain leadership position in the payments domain.