By March 2018, all same-day ACH payments will need to be available for withdrawal by the end of the business day. For now, there’s a $25,000 limit on same-day transactions, and the money can’t be moved internationally. Pricing for the service will be determined by individual banks.
This month’s changes to the ACH network will likely be most useful to businesses that need to quickly disburse money to consumers, such as those awaiting insurance claims or payroll checks. Problems with paychecks can be “a very sensitive topic,” said Frank Fiorelle, senior director of risk management for Paychex, the company that handles payroll for one of every 12 private-sector employees in the U.S. “People expect money in their account on a Friday.”
Before the ACH’s upgrade, the quickest way to fix a paycheck error was through a wire transfer, but they can be cumbersome and expensive, costing $25 or more each. In this new world, as long as payroll problems are identified before the early afternoon, Fiorelle said, Paychex will probably be able to get workers their money before the end of day, at no extra cost.
This article was contributed by Bloomberg News.