One major advantage ACH has over paper checks is the processing period. When a transaction is run electrically to a banking network, you save yourself the task of going through intermediary steps that may delay access to your funds. Traditional ACH can get your funds ready within 1-2 days after making a transaction on the ACH network.
However, Same Day ACH can get your funds available on the very day a transaction enters ACH network. The quicker availability of funds is achieved by the addition of further ACH batches to the day to day schedule. Below are the costs and benefits of same day ACH to your business.
- Set up fee and transaction charges
The process of establishing Same Day ACH dealings comes with a few costs. NACHA rules have set up Same Day ACH surcharge for transactions paid by ODFI (bank where the transaction originates) to the RDFI (bank to which funds are deposited). These costs may be passed along by the bank to you as the fee for initiating the process of Same Day ACH transactions.
- Charges by 3rd party payment processors
Also, third party payment processors may offer an added fee for same day transactions as well as costs for settling your Same Day ACH which may be higher.
A small business should, therefore, weigh the advantages of quicker transactions against these extra charges to determine instances when same-day ACH is the best option. Traditional multi- ACH transactions might take only a few days which is worth the wait, but when there’s need to sort out quick fee payment, consider same-day ACH.
- Quicker Payments
Getting quicker payments is an obvious benefit of Same Day ACH, but you can also enjoy significant cash flow benefits if you use it for ACH Credits. For example, traditional ACH allows withdrawal from your business account up to 3 days, before depositing into the recipient’s account. Same Day ACH enables you to keep your money longer.
- Cheaper chargers from your provider
This unique ability to offer payments to your service providers on the same day may allow you to enjoy more affordable pricing which may, in the end, offset costs of early payments and those of processing Same Day ACH transactions.
- Avoid late fee payments
In case you forget to make a payment, Same Day ACH can help you make sort it out and get the funds ready for your vendor in a day- the advanced system will enable you to process emergency payrolls.
Waiting for funds to process for many days after a transaction could be tiresome, and making late fee payments could be stressing too- but with Same Day ACH you have solutions for the two in one.