What does “same-day ACH” mean for me?
In an effort to improve and modernize the U.S. payments system, you may have already noticed a change in the timing that we apply electronic direct deposits to your account. This change was made in September 2016 to help provide you with faster access to funds for same-day Direct Deposits to your account.
What’s happening now?
Beginning September 15, 2017, the Federal Reserve will start processing most ACH debits the same day they are transacted, and Sound will change the times of day we process pre-authorized withdrawals from your account. If you have pre-authorized an electronic payment such as a recurring mortgage or insurance payment, there will likely be no change to the time these payments are withdrawn from your account.
These electronic debits are commonly known as Direct Payments, Direct Debit, ACH Debit, Electronic Check or e-Check. Gym memberships, insurance companies or subscriptions are examples of these payment types. Paper checks written to merchants like grocery or big box stores may be converted to ACH debits. If so, these checks can clear your account that very day.
How can I prepare?
- Make sure the money is there: To prevent unintentional overdrafts or insufficient funds, it’s important to make sure there are enough funds in your account to cover all transactions you authorize. Use Online Banking and Mobile Banking to access your account balances and information anytime, anywhere so you know before you shop. Set up alerts to notify you of transactions and low balances.
- Stay on top of your balances: Build good habits by keeping your available account balances at a level that supports your spending. Make a savings goal and gradually build your savings account balance to serve as a safety net. You can opt to have funds transferred automatically from savings to checking to cover shortfalls.
- Protect yourself: Consider opening a Personal Line of Credit or Credit Card and set up automatic transfers to prevent overdrafts. You can also opt-in to Courtesy Pay overdraft protection.