ACH Roadmap: Bridging the Future - Payment Conference · Capabilities of Same Day ACH SOONER...

prior written permission of Nacha. This material is not intended to provide any

warranties or legal advice and is intended for educational purposes only.

The ACH Network and the Future of Payments

September 2019Utility Payments Conference

Danita T. Tyrrell AAP, APRPDirector, ACH Network Rules

• https://www.youtube.com/watch?v=1HmjiGGJ3lk

The ACH Network is Thriving

Commonly Used U.S. Faster Payments Solutions

• Nacha Same Day ACH

• The Clearing House RTP©

network

• Early Warning Zelle©

• Mastercard MoneysendTM

• SHAZAM Network

• ExcheQ

• Visa Direct

New entrant: FedNow 24x7x365 Real time settlement support

Target date: 2023-2024

Enhancements Are Coming to Expand the Capabilities of Same Day ACH

SOONERBeginning Sept. 20, 2019, the availability of funds for many Same Day ACH and other ACH credits will occur sooner in the day

HIGHERBeginning March 20, 2020, the per-transaction dollar limit for Same Day ACH will increase to $100,000

LATERBeginning March 19, 2021, access will be extended by enabling Same Day ACH transactions to be submitted to the ACH Network two hours later every business day

Providing Faster Funds Availability

1 - RDFIs in the Atlantic Time Zone may use Eastern Time as local time for the 1:30 p.m. and 5:00 p.m. requirements2 - End-of-processing day will be the same standard as with Same Day ACH’s original Phases 1 and 2

Funds availability times for ACH credits, by RDFI receipt time

Effective Date for third window: March 19, 2021

Expanding Access to Same Day ACH

• Foundational concepts on faster payments• At-a-glance solution

comparison• Resources for more

information• First step in education

process• https://www.nacha.org/re

sources/faster-payments-101

Faster Payments 101

• Educational and decision making platform to help entities develop a faster payments strategy• Will coach organizations on:

• Need for a strategy• Developing a strategy• Opportunity costs of not developing a strategy• Implementing a chosen strategy• Operational and post-implementation challenges

• Under development by the Payments Innovation Alliance’s Faster Payments Project Team

Faster Payments Playbook

• What is an API?• Set of programming instructions that lets one software application

ask another to perform a task or series of tasks• Always on and communicating real time• Enables direct & real-time communication between back-office

systems• Corporate-to-bank• Bank-to-cloud ERP

• Three types of APIs• Public• Partner• Private

APIs (Application Programming Interface)

• Resulted from merger of Nacha’s Payments Innovation Alliance’s API Standardization Industry Group and the IFX Forum, an international standards organization

• Mission• Afinis is a member-led organization established on behalf of the financial

services industry by NACHA. NACHA unites diverse stakeholders to develop rules and standards that foster compatibility and integration across the financial services ecosystem. Afinis members share a single vision: to improve and support efficiency, safety, and interoperability for all financial services participants by developing and promoting adoption of implementable and open API and financial services messaging standards.

• Strengthen and accelerate development of standardized APIs in support of the U.S. and global financial services industry

Afinis

• Developer portal and sandbox where developers can• Register to access Afinis APIs

• Discover and explore documentation

• Upload Apps for Afinis sandbox testing

• Learn and collaborate with other developers

• Focus on business payments and treasury services

Afinis

• Released API standards• Get Transaction Status

• Allows an Originator to check status of a submitted payment instruction

• Initiate ACH Payment• Allows businesses to submit payment instructions without having to

work across multiple systems

Afinis

• API use cases for future development• Real-time Billing Account Number Verification

• Get Corporate Transaction History & Get Corporate Account Balance

• Expand Bank Contact To Support Possible Rule

• Request for Payment

• Account Validation for Tax Credits

Afinis

• Demonstrates how businesses can leverage Afinis APIs to more effectively exchange payments and information• Shows how to simplify the pre-payment and post-

payment processes• Fast, simple and standard end-to-end transactional

experience

Nacha Corporate Experience

• Expert services for organizations that need help understanding how payments can best work for them• Customized payment strategy development and

implementation

• ACH Education

• Custom Onsite Training

Nacha Elevation Consulting

Danita Tyrrell, AAP, APRP

Director, ACH Network Rules

dtyrrell@nacha.org

THANK YOU!

QUESTIONS?

ACH Roadmap: Bridging the Future - Payment Conference · Capabilities of Same Day ACH SOONER...

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