Having convened stakeholders from across the public and private sectors and outlined criteria for effectiveness, the Federal Reserve’s “faster payments” initiative will in 2016 begin assessing proposals for improvement, begin implementing the ISO 20022 standard for wire transfers and facilitate the transition to universal same-day ACH, according to a Fed report today.
Everyone uses a username and password; large shares use out-of-band authentication and challenge questions.
When same-day ACH credit capability becomes available this fall, it will provide a wide variety of opportunities to add value for business and retail customers alike.
As ABA had advocated, the Federal Reserve today finalized changes aligning the regional Federal Reserve Banks’ FedACH system with NACHA’s same-day ACH rule, helping to ensure the ubiquity of same-day ACH for financial institution customers.
The Federal Reserve Banks and the Clearing House are exploring how to adopt the ISO 20022 payment messages for the U.S. wire transfer systems (i.e. Fedwire Funds Service and CHIPS, respectively), but the scope, means and timing of adoption have not yet been determined.
ABA today urged the Federal Reserve to approve the recent rule change from NACHA, the electronic payments association, that would require financial institutions to have same-day ACH capability and require sending institutions to pay a 5.2 cent per-transaction fee to offset the costs of participating in same-day ACH.
The Federal Reserve today requested comments on changes that the regional Federal Reserve Banks would make in connection to NACHA’s same-day ACH rule.
NACHA, the electronic payments association, today announced that its members voted to finalize a rule change that will accelerate ACH settlement, introducing two extra windows during weekdays — morning and afternoon — for credit transactions. The rule provides for fees so that receiving financial institutions can recover costs associated with handling same-day ACH.