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.