Payments will come out faster

Soon, there will be a change to the way electronic payments, also known as ACH debits, are processed by the Federal Reserve.

Starting September 15, 2017, the Federal Reserve will begin processing most ACH debits the same day they are transacted. That means some payments could come out of your account faster than before.

This is an industry-wide change that is the result of a faster and more efficient ACH network (the network that moves money between banks). All banks and credit unions will be adjusting electronic payment processing times accordingly.

Types of payments affected

Typical ACH debits include payments to utilities, health club dues, credit card providers, etc. Some other ACH transactions may also include:

  • Paper checks written to merchants such as grocery stores and big box stores may be converted to ACH debits. If so, these checks can clear the same day written.
  • Debit Cards from retailers (such as Target) linked to your checking account and using the ACH process. If so, these transactions can also clear the same day written.

Know your available balance

Be Prepared!
Know your balance: Your account may show two balances: available and actual(sometimes called “ledger”). To avoid overdraft or insufficient funds fees, make sure the available balance in your account is enough to cover transactions at the time of payment.