As of September 15th, 2017 originators of ACH debit transactions will have the option of processing and settling transactions (debiting your account) on the same day the payment was scheduled. This change is being implemented at all financial institutions in the United States, so it’s important to be aware of how your transactions may be affected.
What is an ACH Debit?
A payment initiated by any given originator using your routing and checking account number.
Who is an Originator?
An originator is any entity – such as a merchant or another Financial Institution – that can initiate an ACH transaction. Examples include:
- A merchant such as Comcast processing (debiting) a payment for a monthly bill from your account.
- A lender such as Wells Fargo processing (debiting) a mortgage or consumer loan payment from your account.
- Another bank or credit union initiating a transfer of funds, pulling from your account at SF Fire Credit Union and depositing to an account at that institution.
Debits May Clear Your Account the Same Day As Scheduled
Up until now these ACH transactions (once they have been initiated on the scheduled due date ) have typically required 1-3 business days to post against (to be debited from) your checking account. Originators will now have the option of “Same Day Debits”. This means a payment or transaction scheduled for on a particular date could clear (be debited from) your checking account with SF Fire Credit Union that same day. It will be up to each individual originator to decide whether to exercise this same-day debit option and cause this change.
Managing Your Expectations
Previously, it was common to schedule a payment with a merchant, have the payment credited to your loan or bill that day, and then still have time to make a deposit or transfer to your SF Fire Credit Union checking account prior to the payment clearing your account. This may no longer be a safe strategy, as you should assume the payment could be taken the same day.
It is possible you will see payments rejected if they post to your account sooner than you expected. This could trigger returned item fees from both the Credit Union and the originator.
What You Can Do To Prepare
You may need to adjust when you schedule payments and transfers. There are a few options to consider:
- Contact originators of ACH debit transactions to change any automatic payment dates or due dates.
- Adjust dates of scheduled transfers to or from your SF Fire Credit Union checking account
- Review your Overdraft Protection options for your SF Fire Credit Union checking account, to cover any of these same-day debits.
If you have any questions or need assistance reviewing your Overdraft Protection options or account history, please feel free to contact us at 1.888.499.3473 during our Contact Center hours, 7 am – 8 pm, Monday through Saturday, or visit our branches 8:30 am – 6:00 pm, Monday through Friday, and 8:30 am – 3:00 pm on Saturday.