New Rules Impacting ACH Debit Transactions

Published: 09/07/2017

Beginning September 15, Parkside Credit Union, as well as all other financial institutions, will be required to follow new regulations that allow Automated Clearing House (ACH) electronic debits (payments) to post multiple times per day. (Currently, ACH credit transactions are posted multiple times per day while debit transactions are only posted once per day.) Please see below for important details on this regulatory change.

What is happening?

Historically, ACH debit (payment) transactions did not post to your account for a day or two following the transaction. Starting September 15, ACH debit transactions—including paper checks that are converted to ACH by payees—could post to your account the same day they are authorized.  

How will this affect me?

A payment you make may come out of your account on the same day as the transaction. Prior to this regulatory change, if you authorized the utility company, for example, to withdraw $100 for your monthly bill on a Monday morning, the money was not actually debited until Tuesday morning, or later. Under this new rule, ACH debits (payments) will be posting throughout the day, so the payment you make to the utility company on Monday may come out of your account on Monday (not the next day or later that week), thus eliminating any "cushion” or “float.”

What should I do to prepare?

Going forward, you will need to make sure that funds are available before initiating debit payments. Please ensure any payment authorizations are not made until the funds are in your account. It is important to note that transactions authorized prior to an anticipated deposit may result in non-sufficient funds (NSF) fees as well as other charges.

If you have any questions or concerns regarding this change, please contact us at 734.525.0700.

View all posts