What Faster Payments Mean For Businesses The trend toward same-day/immediate payment networks is accelerating worldwide. Countries such as the United Kingdom, Denmark, India and Chile have real-time or near real-time payment systems in place. Predictions for the next 2-3 years indicate at least another 10 countries will make commitments to new immediate payment methods. In the United States, the most recent development is the introduction of same-day settlement of Automated Clearing House (ACH) transactions. Typically, ACH transactions take 24-48 hours to process. Now, with a new rule that took effect September 23, 2016, all banks accept requests for Same Day Settlement of qualified ACH credits. How does this new rule impact businesses? Currently, the only universal method to send funds same-day is by wire transfer, which can be costly and not practical for smaller payments. Businesses today are keenly focused on cash flow and accounts receivables management. With Same Day ACH, companies may increase cash flow and improve the experience of their customers. Benefits include: 1,2 • Providing a more accurate, real-time view of balance sheets, incoming payments and any potential cash shortages • Enabling companies to gain efficiencies in straight-through processing with a greater depth of data for each payment transaction • Fulfilling emergency payroll distributions to employees for a final paycheck or to correct an error with regular payroll processing • Reimbursing insurance claims directly into patient accounts, even on the same day as the procedure or appointment Continued on next page April 2017 THE QUARTERLY COLLECTION What you need to know SAME DAY ACH FACTS More than 13 million Same Day ACH transactions* *Data reflects numbers gathered between September 23 – December 31, 2016. Direct deposit via ACH payments had the greatest volume of Same Day ACH transactions Approximately 194,000 Same Day ACH transactions daily Average of $1,283 per transaction 52 % - 6.8 Million Direct Deposit via ACH 32 % - 4.1 Million Business-to-Business Payments 14 % - 1.8 Million Person-to-Person Payments 2 % - 233,000 Consumer Bill Payments FASTER PAYMENTS