Same-day ACH took effect on September 15, 2017.

What is same-day ACH?

ACH transactions are the electronic payments clearing an account. Most people have these transactions, whether its mortgage or rent payments, bill-pay items, or paper checks converted to an electronic approval at a local store. ACH, which stands for Automated Clearing House, is governed by the National Automated Clearing House Association (NACHA), and they have adopted new rules governing when transactions can clear accounts. Historically, ACH transactions post to a member's account the day following the authorization, creating a one-to-two-day float. However, under the new framework this delay (or float) in transactions posting to a member’s account no longer exists; and once authorized, a transaction can post immediately.

What do I need to do?

If you have automated payments set to debit your account, whether it is through bill-pay or another source, review your agreement with the service provider and verify the timing of the effective date to ensure you know when these payments are to clear your account. 

Ensure the funds are in your account to cover any payment authorizations, rather than relying on the historic one-day float for direct or night drop deposits, or check hold releases that could post the following day.

What does this mean for me?

Transactions will clear your account sooner than they had historically. If there are insufficient funds to cover these transactions, overdraft fees will result (see Fee Schedule for details). 

The time available for you to request a stop payment will be much shorter. Depending on the circumstances, a Written Statement of Unauthorized Debit will have to be completed and signed in its place. This will substantially increase the time to recover funds from unauthorized or disputed debit transactions. 

Thank you for your continued loyalty to Latah Credit Union.