Final Rule Analysis: FedACH SameDay Service

CUNA
July 21, 2010 | COMMENTS

The Federal Reserve Board (Board) announced rules for FedACH SameDay, a new same-day automated clearing house (ACH) service with Federal Reserve Banks, effective August 2, 2010.

Credit unions and other depository institutions that would like to participate must opt-in to the FedACH SameDay service with a participation agreement. Credit unions that opt-in may choose the extent of their participation and indicate whether they wish to 1) send only, 2) receive only, or 3) send and receive same-day debit items.

Same-day settlement is limited to transactions that arise from consumer checks converted to ACH and consumer debit transfers initiated over the Internet and phone.

Specifically, the FedACH SameDay service only applies for the origination of non-government debit payments and includes only Accounts Receivable Entry (ARC), Back Office Conversion Entry (BOC), Point-of-Purchase Entry (POP), Telephone-Initiated Entry (TEL), Represented Check Entry (RCK), and Internet-Initiated Entry (WEB).

The transmission deadlines and settlement times for the FedACH SameDay service:

• For Forward same-day debit transfers, the transmission deadline to FedACH is 2:00 pm EST and the posting time is 5:00 pm EST.
• For Return same-day debit transfers, the transmission deadline to FedACH is 4:30 pm EST and the posting time is 5:30 pm EST.

Customers will not be able to request an extension to the FedACH SameDay service. The Board also found that an extension to current FedACH immediate-settlement service may have a minimal effect on the new rules for the transmission deadlines for the FedACH SameDay service.

Credit unions seeking additional details about FedACH SameDay should contact their Federal Reserve Account Executive or visit www.frbservices.org.

If you have any questions regarding the final rule, please contact Senior Vice President and Deputy General Counsel Mary Dunn at mdunn@cuna.com or (800) 356-9655, extension 6736, or Regulatory Counsel Dennis Tsang at dtsang@cuna.com or extension 6733. A copy of the final rule is accessible at this link.