Important Notice: Same Day ACH Processing
Do you know what an ACH transaction is? Most member accounts have ACH transaction activity. ACH transactions are typically originated by electronic authorization, and can also be a paper check converted by the merchant to an electronic approval are posted to your account automatically (excludes debit card transactions). Common ACH transactions include direct deposits and payments made to utility and loan companies, etc. Historically ACH transactions have typically posted to member accounts on the business day following the authorization (e.g. a member authorizes the electric company to withdraw $60.00 for the monthly bill on a Tuesday morning and the withdrawal posts to the member’s account early on Wednesday morning).
Beginning September 15th, most ACH transactions will post the day they are authorized. This change is being made nationwide and affects all consumers, financial institutions, and businesses.
What does this mean for you, our member?
In the past there has been a processing delay for ACH transactions which created a one day “float” for authorizing transactions. However, with this change, the delay in transactions posting to member accounts is eliminated and once authorized, a transaction can post immediately. Therefore, payment authorizations should not be made until the funds are in the account, rather than counting on a direct deposit or night drop deposit or check hold release posting the following day, etc. Transactions authorized prior to an anticipated deposit will result in insufficient funds (NSF) fees, CU Coverage fees (courtesy pay – for enrolled members), and returned items to the merchants, often resulting in merchant overdraft fees (see Fee Schedule for details).