After one year of same-day credits, the Automated Clearing House has finally launched same-day clearance and settlement for debit transactions. And leading executives at NACHA say the network administrators are working on the final preparations. This time the goal is to ensure all financial bodies and corporates are ready for same-day debits— also known as Phase 2.
Phase 2 comes after same-day credit clearing which hit the market last year as Phase 1 of NACHA’s faster-processing strategy. Credits permit a user to move payments from his/her banking account to that of the receiver while debits allow companies, like billers, to draw funds from the customer’s account.
The move to ascertain that all parties in the network are geared up for same-day debit processing is very crucial because ACH debits are way chancy than credits. Though losses attributable to fraud are very low across ACH judged against other networks, the introduction … Read More