Updated as of October 11, 2018 - Federal Reserve Financial Services is committed to providing the answers and information you need. Answers to many of our customers' most frequently asked questions can be found using the links below.
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For more information on the ACH Rules change providing for Same Day ACH, please see the NACHA website .
With the publication of a final 31 CFR Part 210 rule (Off-site) the Treasury confirmed its participation in Same Day ACH effective Sept. 11, 2017. As of April 16, 2018, Treasury also made Same Day ACH credits available.
An ODFI will be assessed the Same Day Entry fee only for forward items that are actually processed and settled as Same Day ACH items, whether commercial or government.
Yes, returns associated with a federal government RTN are eligible for same day settlement if they are not future-dated and are received by FedACH within one of the three processing windows for current day settlement.
Yes, ACH participants may originate and receive same day ACH entries to and from a state government agency.
As provided by the ACH Rules, a Same Day Entry Fee of 5.2 cents per transaction is assessed to ODFIs and credited to RDFIs to cover the RDFIs' costs of enabling and supporting Same Day ACH. The Same Day Entry Fee is collected by the ACH operators on behalf of the RDFIs and settles to ODFIs and RDFIs on a monthly basis.
No portion of the 5.2-cent Same Day Entry Fee is retained by the ACH operators or NACHA.
The Federal Reserve Banks will settle the Same Day Entry Fees for all inter-operator transactions as well as intra-operator transactions where both the ODFI and RDFI are FedACH customers. The Clearing House (TCH) will settle only its intra-operator transactions (where both the ODFI and RDFI are TCH customers).
The origination and receipt of Same Day ACH items is separated from the non-Same Day ACH items by use of unique accounting transaction codes. Furthermore, the totals are separated by credits and debits.
The over $25,000 value limit applies to a single item. No single item over $25,000 will be eligible for same day settlement. Additionally, a $2,500 value limit will be imposed on items with an SEC Code of RCK (Re-Presented Check Entries) or XCK (Destroyed Check Entries).
All items in the batch will be processed, and the item(s) over the limit will be assigned the next business day's settlement date, whereas the remaining items will receive same day settlement.
All return entries received prior to the 4:00 p.m. ET deadline, including credits and debits, all SEC codes, all dollar amounts, both commercial and government, are eligible for same day settlement, regardless of whether the forward entry was processed as a same day entry.
Whether processed and settled same day or not, return entries will not be assessed the Same Day Entry Fee.
NOCs, or those entries bearing the "COR" standard entry class code, are eligible for same day processing and will not be assessed the Same Day Entry Fee. Per the ACH Rules, notifications of change settle at the earliest opportunity.
Prenotification entries are eligible for same day settlement whether they are debits or credits and do not bear the "IAT" standard entry class code. Prenotification entries will be assessed the Same Day Entry Fee.
Both debit and credit reversal files are eligible for same day ACH settlement, and the Same Day Entry fee will be incurred by the ODFI.
The derived returns function within the FedLine Web Solution cannot currently be used to derive returns for Same Day ACH forward entries on the same day the forward entry settled. Current functionality does not make item-level information available until the next processing day. If an RDFI wishes to return a Same Day ACH forward entry for settlement on the same day it is received, a return file will need to be created and submitted to FedACH Services by the 4 p.m. ET deadline. Paper returns received by the 8:00 am ET deadline will settle on the same day as well.
The effective entry date is critical. Assuming the file is submitted by the appropriate deadline, it is the effective entry date field that triggers same day settlement for eligible transactions. The current processing day date in the effective entry date field is interpreted as an intentional indication of the desire for same day settlement. In addition, a batch will be eligible for same day settlement whether the effective entry date field contains the current processing date, or is invalid or stale. This means that a batch could be unintentionally settled as same day, and the appropriate Same Day Entry Fee will be assessed.
Customers should include a future date in the effective entry date field to ensure future-day settlement. As a reminder, per the ACH Rules, a credit entry may be dated no more than two days in the future while a debit entry may be dated only one day in the future.
Stale-dated forward entries, if submitted after 2:45 p.m. ET and prior to 2:15 a.m. ET, will not settle same day and will not be assessed the Same Day Entry Fee.
Same Day ACH items and non-Same Day ACH items may be included within the same outgoing file transmission. Separation of batches will continue to occur at the settlement date/SEC code level.
The file ID modifier is a unique code within each output file that begins with "A" with the first output file to an institution, and increments by a letter for each subsequent output file creation. The first file - the "A" file - will be transmitted by noon ET, and is a culmination of those entries submitted between 3:00 a.m. and 10:30 a.m. ET. If no entries are submitted within this first window, there will be no file distribution. Additionally, if there are too many entries processed during this window to fit into one file, a receiving institution may receive more than one file - an "A" file and a "B" file. The second delivery - or what would typically be a "B" file - will be based on the 10:30 - 2:45 p.m. processing window. If no entries are submitted within this second window, there will be no file distribution. Therefore, the output file creation is dependent upon how many entries are processed for the receiving institution during a particular processing window. One institution's "A" file may output at the same time as another institution's "B" file.
Generally speaking, output files will be delivered to customers in the order in which they are created and the file ID modifiers will be sequential. However, an exception to this will occur if the first item received and processed by FedACH after the 2:45 p.m. ET transmission window is a forward item. That forward item will trigger the creation of the "C" file (assuming that institution had received only two output files earlier in the day). A return item received by FedACH afterward will trigger the creation of the "D" file (an AJ19 file) that will be delivered to the customer before the "C" file.
The file transmission deadlines (10:30 a.m. ET, 2:45 p.m. ET) and same day item eligibility dictate settlement date and time. FedACH does not add a file identifier to distinguish settlement. However, the accounting and settlement codes on the Advices will separate the same day and non-same day ACH items.
Return entries that are not future-dated and are received by FedACH between 2:45 p.m. ET and 4 p.m. ET will be delivered with a file APPLID of AJ19. Those return entries submitted between 2:45 p.m. ET and 3:15 p.m. ET will be delivered by 4 p.m. ET. Return entries submitted between 3:15 p.m. ET and 4 p.m. ET will be delivered in a separate AJ19 file by 5 p.m. ET. Customers will receive only one settlement advice that displays items from both AJ19 return files following the 5 p.m. ET distribution.
This "late afternoon return" service is an additional window in which RDFIs can return their ACH items; institutions are not required to use the 4:00 p.m. ET return item deadline for return submittal.
Extensions on Same Day ACH deadlines will not be allowed.
A return entry that is future-dated will not settle same day, regardless of submission time. A return entry that contains either a current, stale or invalid date will be considered a Same Day ACH return and settle same day if received by 4 p.m. ET.
Regardless of the time at which the file containing the forward reject item(s) is received, the item(s) will not settle same day but will instead settle next day. FedACH processing will be modified in the latter half of 2018 so that forward reject items with a current day effective date will settle on the date they are received by FedACH Services, assuming all other same day criteria has been met.
The operators will not edit the optional same day indicator located in the company descriptive field of the batch header record. Operators will not rely on this field to determine same day eligibility.
FedACH does not verify that the original forward entry has settled prior to a corresponding return entry. However, based on the ACH Rules, the return entry should be constructed using the same batch header information as the original forward entry. Therefore, the effective entry date on both the forward entry and the return entry should be the same. If the return entry is constructed correctly, the return entry will settle no sooner than the original forward entry.
ODFIs can set dollar thresholds at the RTN or Company ID level in the FROM Service, which, when exceeded, will result in batches pending for review and release.
FedPayments Reporter has a variety of reports already available to assist with reconciliation and research, although no major service changes to specifically address Same Day ACH are expected in the immediate timeframe.
RDFIs can set up batch-level criteria to receive alerts at each distribution window of any batches delivered to them and settling same day.
Each time an advice is created, it reflects the dollars settling at that given settlement window. The first advice created for the day will reflect both return and forward settlement that will be available at 1:00 p.m. ET; the second advice will reflect the settlement for forward and return entries available at 5:00 p.m. ET; the third or return advice will only reflect return entries settling at 5:30 p.m. ET; the fourth advice is only for prefunded origination settlement, and the end-of-day advice will reflect those entries settling one or more days in the future that will post at 8:30 a.m. ET on the settlement date.
Not necessarily. Because FedACH will distribute items available for any given delivery regardless of the associated settlement time, it may be necessary to use information from multiple advices to balance to the output files received. FedACH advices will, however, always balance to the information posted in the Federal Reserve Banks’ Accounting System. For additional details on advices and balancing, please refer to the FedACH Services Settlement Tips (PDF) document posted in the Same Day ACH Resource Center.