Nacha Increases Payout Limit for Same-Day ACH to $1 Million

Nacha’s ACH Same Day raised its payout limit to $1 million on Friday, March 18, according to a press release.

The new threshold, instead of $100,000, is expected to create new use cases and expand existing ones, including vendor and supplier payments for businesses, insurance claims, tax payments and salary funding.

Nacha manages the administration, development and governance of the Automated Clearing House (ACH) network, which is the electronic system that facilitates the movement of money in the United States.

“The growth of Same Day ACH in just over five years has been phenomenal as the payments community has embraced this faster payment method,” said Jane Larimer, President and CEO of Nacha. “Nacha constantly heard requests to increase the dollar limit. Two years ago, it successfully rose to $100,000. Now Nacha, ACH operators, banks and credit unions across the country are responding to the need for a $1 million limit.

The release notes that the changes to the ACH network are made and implemented in conjunction with the two ACH network operators of the ACH network, the Federal Reserve and the Clearinghouse, which provides seamless interoperability.

The statement quoted Cheryl Venable, executive vice president and chief payment operations officer for Federal Reserve Financial Services, as saying the new limit “responds to industry demand and is a great example of how the network ACH is evolving to meet market needs and support innovation.”

Jason Carone, senior vice president of ACH product management at the Clearing House, said it’s never been clearer that faster payments are needed.

“During the pandemic, businesses and consumers have turned to faster payment methods and this trend continues. Raising the Same Day ACH transaction limit to $1 million is good not only for businesses and consumers, but for the economy as a whole,” he said.

PYMNTS wrote that the number of transactions on EPN, the ACH for electronic funds transfers, increased by 9.6% in 2021.

Related: ACH Volume on Clearing House EPN Industry Surpassed in 2021

The rise was greater than that of the broader ACH market as consumers continued to use electronic payments more.



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