ACH Central

ACH Fed Settlement FAQs

• Will Same-Day ACH settlement amounts be received from the Fed on the same day as the file submission?

  Yes. Same-Day ACH items can be included in the 10:30 a.m. CT, 2:30 p.m. CT and 4 p.m. CT receipt files. The Fed settlement times for those items will be noon CT, 4 p.m. CT and 4:30 p.m. CT.

• Will we receive multiple settlement files from the Federal Reserve?

  The Federal Reserve will send settlement files at noon CT, 4 p.m. CT, 4:30 p.m. CT, and 7:30 a.m. CT. Settlement for Same-Day ACH items can be included in the noon CT, 4 p.m. CT, and 4:30 p.m. CT files.

ACH Online/Origination FAQs

• If we use Catalyst Corporate for ACH origination, will Catalyst make files available for release several times a day?

  Yes. Transactions released in ACH Online will be sent to the Federal Reserve at 8:30 a.m. CT, 12:45 p.m. CT, 2 p.m. CT and 6:30 p.m. CT.

• If we use Catalyst Corporate for ACH origination, how can we create a Same-Day ACH transaction?

  Items released prior to 8:30 a.m. CT or 12:45 p.m. CT with current or stale-dated (previous date) effective entry date entered will be processed as a Same-Day ACH transaction. International ACH transactions (IATs) and high-value transactions above $25,000 are not eligible)

NACHA Rules FAQs

• What is Same-Day ACH?

  NACHA has adopted a rule for moving ACH payments faster. The rule enables same-day processing of virtually any ACH payment. Most ACH payments are settled on the next business day; however, businesses and consumers benefit from same-day processing in many scenarios.

  This NACHA rule provides ACH originators the option to send Same-Day ACH transactions to accounts at any receiving financial institution (RDFI). The rule includes a “same-day fee” on each Same-Day ACH transaction, so that RDFIs recover, on average, their costs for enabling and supporting Same-Day ACH.

  Virtually all types of ACH payments, including both credits and debits are eligible for same-day processing. Only international ACH transactions (IATs) and high-value transactions above $25,000 are not eligible.

• What is an Unauthorized Entry Fee? (effective October 3, 2016)

  NACHA implemented a rule intended to improve ACH Network quality by reducing the incidence of ACH debits returned as "unauthorized." Under this rule, an Originating Depository Financial Institution (ODFI) will pay a $4.50 fee to the Receiving Depository Financial Institution (RDFI) for each "unauthorized" return.

  As an ODFI for credit unions, Catalyst Corporate will pass this $4.50 Unauthorized Entry Fee to any originator receiving an “unauthorized” return (reason codes R05, R07, R10, R29 or R51). The fee will be included in your Catalyst Corporate monthly billing invoice.

• What are the Guidelines Regarding the Timing of Debit Entry Postings?

  “An RDFI must not debit the amount of any Entry to a Receiver’s account prior to the Settlement Date of the Entry, even if the Effective Entry Date of the Entry is different from the Settlement Date of the Entry.” 

  For more information please refer to the NACHA Rules Book, Timing of Debit Entries

• What are the Guidelines Regarding the Timing of Credit Entry Postings?

  “An RDFI must make the amount of each credit entry received from its ACH Operator available to the Receiver for withdrawal no later than the Settlement Date of Entry, subject to its right to return the Entry under ACH rules.” 

  For more information please refer to the NACHA Rules Book, Availability of Credit Entries to Receivers.

• What is an addenda record and what information does it provide?

  An addenda record (or 7 record) can be utilized by the ODFI to provide more information to the RDFI on a transaction if allowed by the specific Standard Entry Class (SEC) code.  If an item is a return, the addenda record will show the return reason code.  If the item is a Notice of Change (NOC), the addenda record will show the change code and the corrected information.  For more information, please refer to the NACHA rules book.

• What is a Standard Entry Class Code (SEC)?

  The SEC code is used to identify the type of ACH transaction. For example, TEL is a transaction that was requested via the phone, CCD is a transaction for a corporate customer, and a POP is a paper check turned in to an ACH item. For more information concerning SEC codes, please refer to the NACHA rules book

• How does the Standard Entry Class Code (SEC) work with the return code?

  • The SEC code is used to determine the appropriate return reason code for an ACH transaction. For example, RCK (return paper check converted to ACH) has its own return reason codes. A return reason code of R51 is used to return an unauthorized RCK, but R10 is used to return other unauthorized check payments such as ARC, BOC, POP. The NACHA rules book includes a detailed table of return reason codes along with the SEC codes for which they can be used.

  To see a complete list of all NACHA rules, visit the NACHA website.

Same-Day ACH FAQs

• What is Same-Day ACH?

  NACHA adopted a rule for moving ACH payments faster. The rule enables same-day processing of virtually any ACH payment. Most ACH payments are settled on the next business day; however, businesses and consumers could benefit from same-day processing in many scenarios.

  This NACHA rule provides ACH originators the option to send Same-Day ACH transactions to accounts at any receiving financial institution (RDFI). The rule includes a “same-day fee” on each Same-Day ACH transaction, so that RDFIs recover, on average, their costs for enabling and supporting Same-Day ACH.

  Virtually all types of ACH payments, including both credits and debits, are eligible for same-day processing. Only international ACH transactions (IATs) and high-value transactions above $25,000 are not eligible.

• Are we required to participate in Same-Day ACH?

  Same-Day ACH is mandatory for all RDFIs, but it is optional for ODFIs.

• Do we send returns once a day, or should we send them twice a day? If once a day, would we wait until the end of the day?

  The credit union can choose how often to process returns. Catalyst Corporate sends returns entered in TranZact to the Federal Reserve at 2 p.m. CT and 6:30 p.m. CT. Returns (and originations) entered in ACH Online are sent to the Federal Reserve at 8:30 a.m. CT, 12:45 p.m. CT, 2 p.m. CT and 6:30 p.m. CT. Once returns are sent to the Federal Reserve, they cannot be retrieved or deleted.

• Do RDFIs get to keep the 5.2 cent fee when they return a Same-Day ACH item?

  Yes. The RDFI does keep the 5.2 cent fee, even if they return the Same-Day ACH item.

• How do we handle the last file transmission of the day if we are closed by the time it is received? Will staff need to work late to post this last file?

  Same-Day ACH items can be included in the 10:30 a.m. CT, 2:30 p.m. CT and 4 p.m. CT receipt files. Those items have to be posted by the end of the processing day. All future items can be posted on the effective dates. The credit union will need to review their policy for posting items outside the mandatory NACHA Rules (i.e. posting credits before the effective date).

• How does Same-Day ACH work for early closings and holidays (i.e. the day after Thanksgiving)?

  Please refer to the Federal Reserve’s standard holiday schedule. Same-Day ACH items received any day other than the Fed’s scheduled holidays will need to be posted by the end of that processing day. Same-Day ACH items can be included in the 10:30 a.m. CT, 2:30 p.m. CT and 4 p.m. CT receipt files. Those items have to be posted by the end of the processing day. All future dated items can be posted on the effective dates. The credit union will need to review their policy for posting items outside the mandatory NACHA Rules (i.e. posting credits before the effective date).

• How does Same-Day ACH affect settlement at Catalyst Corporate? When do the charges reflect on our corporate account?

  The Fed has multiple settlements, and Catalyst Corporate will post the settlements as they are received. The receipt file settlements will be received at noon CT, 4 p.m. CT, 4:30 p.m. CT, and 7:30 a.m. CT. Settlement for Same-Day ACH items can be included in the noon CT, 4 p.m. CT, and 4:30 p.m. CT settlements. The Fed will send settlements for origination items at noon CT, 4 p.m. CT, and 7:30 a.m. CT.

• If we pick up the last file of the day, can we wait until the next morning to work those entries?

  The Same-Day ACH transactions will need to be posted by the end of the processing day, but the next day items can be posted the next morning by the opening of business or 9 a.m.

• If the credit union uses Catalyst Corporate for ACH origination services, will Catalyst make files available for release several times a day?

  Yes. Transactions released  in ACH Online will be sent to the Federal Reserve at 8:30 a.m. CT, 2 p.m. CT and 6:30 p.m. CT.

• With Same-Day ACH, if you get a return in the morning, do you have to wait until the end of the day to return it?

  The item can be returned the same day, but it is up to the credit union to determine what time of day they process their returns. Returns entered in TranZact will be sent to the Federal Reserve at 2 p.m. CT and 6:30 p.m. CT. Returns entered in ACH Online will be sent to the Fed at 8:30 a.m. CT, 12:45 p.m. CT, 2 p.m. CT and 6:30 p.m. CT. Once returns are sent to the Federal Reserve, they cannot be retrieved or deleted.

• Is structuring large transactions just under the limit a rule violation?

  Yes. Same-Day ACH transactions cannot be more than $25,000. For further information, please review the NACHA Rules book or  NACHA's website.

• We generally post payroll credits a day before the effective date. Should these changes affect or change this practice?

  You may continue to post credits early, but the Fed will not send the settlement for those transactions until the effective date.

• What's the timeframe for returning a dispute of Same-Day ACH debit transactions?

  Same-Day ACH does not change the NACHA Rules for the return time frames. According to the NACHA Rules, returns need to be made available to the ODFI no later than the opening of business the second banking day following the settlement date of the original entry. That applies for both credit and debit entries. For further information, please refer to the NACHA Rules book or NACHA's website.

• Will Same-Day ACH settlement amounts be received from the Fed on the same day as the file submission?

  Yes. Same-Day ACH items can be included in the 10:30 a.m. CT, 2:30 p.m. CT and 4 p.m. CT receipt files. The Fed settlement for those items will be received at noon CT, 4 p.m. CT and 4:30 p.m. CT. 

• Will we receive multiple settlement files from the Federal Reserve?

  The Federal Reserve will send settlement files at noon CT, 4 p.m. CT, 4:30 p.m. CT, and 7:30 a.m. CT.  Settlement for Same-Day ACH items can be included in the noon CT, 4 p.m. CT and 4:30 p.m. CT files.

• Are returns, notifications of change (NOCs) and death notification entries (DNEs) included in the Same-Day ACH rule?

  Yes. For further information, please review "Same Day ACH: Moving Payments Faster" in the NACHA Rules book or on NACHA's website.

• Can returns be included in all receipt files?

  Yes, returns may be included in all receipt files. Same-Day ACH items originated by your credit union may be returned to your credit union the same day in the 2:30 p.m. and 4 p.m. receipt file deliveries. The 4 p.m. receipt file delivery will include only Same-Day ACH returns. These are either Same-Day ACH items originated by your credit union that are being returned or Same-Day ACH items received and returned by your credit union that are being dishonored.

• Can future dated CREDIT items be posted the day they are received?

  Per NACHA operating rules, ACH credits can be delivered up to two banking days prior to the Settlement Date. It is recommended that credits be posted on the Settlement Date, however, credits can be posted prior to the Settlement Date if your credit union’s policy allows.

• Can future dated DEBIT items be posted the day they are received?

  Per NACHA operating rules, ACH Debits can be delivered no earlier than 1 day prior to the Settlement Date but cannot be posted prior to the Settlement Date, therefore, credit unions that do not currently warehouse ACH items will need to pay close attention to Settlement Dates.

• In Phase 1, what happens if a batch submitted for same-day settlement includes debit and credit items?

  In Phase 1, only credit items are eligible for same-day settlement. No forward debits of any kind will be eligible for same-day settlement. Any forward debit item(s) submitted in a batch that is processed as same-day will be processed, but will settle the next business day. Credit items will settle same day.

• Is the over $25,000 value limit applied to a single item or to a batch?

  The over $25,000 value limit applies to a single item. No single item over $25,000 will be eligible for same-day settlement in any of the three phases.

• What happens if a batch submitted for same-day settlement contains one or more item(s) over $25,000?

  All items in the batch will be processed, and the item(s) over $25,000 will be assigned the next business day's settlement date, whereas the remaining items will receive same-day settlement.

• What is the difference between the effective date and the settlement date?

  The date that the originator requests an item to be posted is the effective date, and the settlement date is when the Federal Reserve (or EPN) will settle the transaction with the financial institution.  Items should be posted by the settlement date.

• Will Real Time Payments be sent through the ACH network?

  No. Real Time Payments will go through a new network that is still in development. They will not be ACH items or governed by the ACH NACHA Rules and Regulations.

TranZact ACH Receipt FAQs

• Do we send returns once a day, or should we sent them twice a day? If once a day, would we wait until the end of the day?

  The credit union can choose how often to process returns. Returns entered in TranZact will be sent to the Federal Reserve at 2 p.m. CT and 6:30 p.m. CT. Returns entered in ACH Online will be sent to the Federal Reserve at 8:30 a.m. CT, 12:45 p.m. CT, 2 p.m. CT and 6:30 p.m. CT. 

• Are there any exceptions to the times the ACH receipt files are made available?

  Yes. On Fridays, the Fed holds the 7:30 p.m. CT file until Sunday night (around 8 p.m. CT). Also, on a the eve of a Fed holiday, the Fed holds the 7:30 p.m. CT file until the night prior to the next business day (around 8 p.m. CT). The 2:30 a.m. CT files are always made available on the morning of the next business day. On the eve of a Fed holiday, the Fed holds the 7:30 p.m. CT file until the night prior to the next business day (around 8 p.m. CT). 

• When is Friday’s 7:30 p.m. CT file available for download?

  On Fridays, the Fed holds the 7:30 p.m. CT file until Sunday night (around 8 p.m. CT). The 2:30 a.m. CT files are always made available on the morning of the next business day.

• When are the 7:30 p.m. CT files available on days prior to or after a Fed Holiday?

  On the eve of a Fed holiday, the Fed holds the 7:30 p.m. CT file until the night prior to the next business day (around 8 p.m. CT). 

  The 2:30 a.m. CT files are always made available on the morning of the next business day.

  For example, if the Federal holiday is on a Monday, the Friday 7:30 p.m. CT file is held until Monday evening (around 8 p.m. CT).  The Wednesday 7:30 p.m. CT file before the Thanksgiving Day holiday will be available Thursday evening (around 8 p.m. CT) since the Friday after Thanksgiving Day is not a Federal holiday.