Welcome to Innovating Payments Top 3 News Headlines. Same Day ACH enters a new era as the per payment limit increases to $1 million, says Digital Transactions. The new cap is a landmark move toward faster payments as the Federal Reserve readies a real-time payments service to compete with The Clearing House Payments RTP® network.
In other news, The Financial Brand reports on what Biden's crypto executive order means for banking and a Central Bank Digital Currency (CBDC). Also making headlines, PYMNTS.com, citing research that states 68% of chief financial officers report increased use of ACH at their firms due to digitization since the pandemic's onset, points out, "ACH is a natural go-to for firms to use as they digitize and innovate to keep up with the pandemic-driven digital shift."
Read on to learn more.
1. A $1-Million Same-Day Cap Takes Effect As the ACH's Latest Move in the Faster Payments Derby (Digital Transactions)
Same Day ACH enters a new era today as the per payment limit increases to $1 million. "The growth of Same Day ACH in just over five years has been phenomenal as the payments community has welcomed this faster payment method," said Jane Larimer, Nacha President, and CEO. "Nacha has consistently heard requests to increase the dollar limit. Two years ago, it very successfully went to $100,000. Now, Nacha, the ACH Operators, and banks and credit unions across the country are meeting the need for a $1 million limit." Read more.
2. What Biden's Crypto Executive Order Will Mean for Banking and CBDCs (The Financial Brand)
President Biden's massive executive order mandating a slew of studies of digital assets-including cryptocurrency, stablecoins, and a central bank digital currency for the U.S.-has been cheered and jeered and sometimes puzzled over. But the bottom line is that the early march 2022 order has officially moved digital assets from a fast-growing sideshow to the center ring of traditional money and payments. Hundreds of companies here and abroad, as well as a growing number of banks, participate in the business in one way or another. Read more.
3. PYMNTS Intelligence: How ACH Can Help Businesses Increase Revenue and Offer Clients a More Seamless Payment Experience (PYMNTS.com)
Restrictions on in-person interactions during the pandemic forced businesses to seek digital alternatives to paper checks as manual processes became impractical or impossible. In their search for solutions, many firms discovered, or rediscovered, the benefits of a familiar standby: the ACH transfer. ACH payments, originally developed in the 1970s, enable money to be moved electronically between bank accounts. Read more.
What trends are you seeing at your financial institution with the new $1 million cap on Same Day ACH payments? What effect might Biden's executive order on cryptocurrency and CBDC have downstream on financial institutions and consumers? How is your financial institution promoting ACH as a tool to help businesses increase revenue, or is it?
Check back soon for our next issue, which will again highlight the industry's most pressing and need-to-know developments. Until then, visit us online at Innovating Payments.
AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.