On September 15, 2017 Same Day ACH payments will be coming to merchants and billing companies. This means that if you agree to make an electronic payment, funds might be debited from your account as soon as the very same day. Previously, it may have taken a couple of days for payments to post. Starting on September 15th, this may no longer be the case.
When making a payment or paying a bill through ACH, available funds must be in your account. If the funds are not immediately available, we recommend you wait until funds are available before making the payment. If funds are not available and are debited from your account, we may charge you a fee. If you do not have overdraft protection, you will also incur an additional fee from the merchant or billing company.
1. What is an ACH payment/debit?
These are electronic debits that are commonly known as Direct Payment, Direct Debit, ACH Debit, Electronic Check or e-check, and similar terms.
2. Why is this changing?
As part of an effort to improve and modernize U.S. payments systems, electronic debit payments can now be processed same day. It is a nation wide regulation intended to provide faster access to funds.
3. What are the benefits?
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 that same day. For example, if you have a bill due on the 20th of the month, the billing company might allow you to call or use its website on the morning of the 20th to make an on time payment, and also have the funds debited from your account on the 20th. 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.
4. Who offers same day payments?
Merchants and billing companies may have an option for same day payment. As soon as that same day, funds may be debited from your account. We recommend that you do not make a payment unless sufficient funds are in your account.
5. What will happen if I make a payment and it is processed before sufficient funds are available in my account?
If you have overdraft protection the payment will go through, but you will incur an overdraft fee. If you do not have overdraft protection – the payment will be returned and you will incur a return fee, plus you may also incur another fee from the merchant or billing company. If you are interested in overdraft protection please contact our Member Relationship Center during business hours at 732-312-1500.
6. Will this affect me if I use Bill Pay or have a scheduled recurring payment?
If a payment is scheduled to be made on a certain day, the electronic payment will be processed and funds may be debited from your account that day. For example, if a bill/automatic payment is scheduled for the 20th of every month, please make sure those funds are available before the 20th.
7. What can I do to prevent my account from being overdrawn?
We offer account alerts via email and text message so that you can stay up-to-date on your account status. To set up these alerts, please click here and follow the enrollment steps.
We also offer overdraft lines of credit. To apply for an overdraft line of credit, please call our Member Relationship Center at 732-312-1500.
If you have any questions about same day ACH, please do not hesitate to contact us.
-First Financial Federal Credit Union