Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CUNA seeks CU cost impact of NACHA processing plan
WASHINGTON (10/31/11)--The Credit Union National Association (CUNA) has asked credit unions for information on the costs and impact of the Electronic Payments Association (NACHA) plan to create a new network-wide premium same-day automated clearing house (ACH) expedited processing and settlement (EPS) service.

NACHA has proposed amending its operating rules to enable EPS ACH entries to be processed and settled on the same day they are originated, while preserving existing ACH processing and settlement features for non-EPS entries. Under the proposal, credit unions and all other Receiving Depository Financial Institutions (RDFIs) would be required to both receive and settle EPS transactions.

The proposal sets specific timelines for payment file transmissions and fund availability, and also proposes new per-entry EPS dollar limits of $25,000 or $100,000.

NACHA has said the proposal would aid financial institutions by easing the flow of funds, increasing customer use of direct deposit, reducing counter-party settlement risks on received ACH credits, and mitigating risks.

CUNA in its comment call said credit unions would incur increased costs, including implementation costs, if the proposal is approved. Credit unions that only perform one ACH pickup per day will also incur new costs for the additional pickup, CUNA adds.

CUNA has specifically asked credit unions whether the EPS service should be made network-wide, or if credit unions and other institutions should be allowed to opt-in to the service.

Credit unions may also comment on the drawbacks, and advantages, that a move to this new structure would create.

For the full comment call, use the resource link.


RSS print
News Now LiveWire
July 's Fed Bank's "FedFocus" has some interesting articles: incl cost/benefits of $1 currency 2 coin conversion ttp://tinyurl.com/nybmnhh
22 hours ago
Do you wish you were a News Now subscriber? Go here: http://t.co/7evfBSjeMx
22 hours ago
Financial education for student body key part of Altura #creditunion, UC-Riverside partnership #NewsNow http://t.co/Xp6OJd66o6
23 hours ago
.@VTcreditunions gains 200 new FB followers in just 2 wks to reach 1,000 http://t.co/I89xJcv4Jg
1 Day ago
.@CUNA is testifying on reg relief Tues,July 15 at 2 p.m. be4 Hs Fin Serv Subc. Here is the agenda and witness list: http://t.co/yBRhlmdqHt
1 Day ago