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Same Day ACH DEBITS: Sept. 15, 2017
New regulations go into effect this September and will have a major impact on your Checking Accounts!
Q: What is an ACH DEBIT?
An ACH DEBIT is an electronic withdrawal from your checking account. These can be made in several ways including: using your account number and routing number directly, or converting a paper check to an electronic check using the account and routing numbers.
Q: How will this change affect my account?
Withdrawals will now process 3 times a day, instead of 1 time. This may cause withdrawals to come out of your account faster than you expect. Often, this will happen the same day you initiate the debit.
Q: What are the benefits of this new system?
This new system allows you to make same-day payments to companies, reducing the chance of getting a late fee or penalty. It also allows you to transfer funds into other accounts or to other people, without waiting until the next day for processing. This new system is also designed to reduce the number of "Holds" placed on accounts, which can be confusing to members who are checking their balances online or at the ATM.
Q: What issues should I watch for?
Because of the previous withdrawal delays, you may not be expecting the funds to leave your account so quickly. This can cause overdraft fees or items to be returned unpaid. It also means that you balance may change several times during the course of the day.
Q: What can I do about this new system?
Because this is a new Federal requirement, there is no way to stop the faster withdrawals from taking place. You CAN protect yourself, and your accounts, by keeping track of your purchases, payment due dates, and by being informed.