With the momentum behind faster payments on the automated clearing house accelerating, fraud prevention is taking on greater importance at banks nationwide. In the latest move, Bank of America Corp. introduced ACH Positive Pay on its CashPro mobile app on Thursday. The move will allow app users to review and then approve or reject transaction requests at any time on a smartphone or smartwatch.
BofA says the new functionality, which is available to users of the CashPro online service, will bring significant convenience to business users, who will now be able to monitor transaction flows at any time, whether or not they have access to a PC. office. The feature also comes as faster payment processing relies on the ACH Network. With same-day processing, trades are moved and settled the same day they are initiated. Traditionally, ACH transactions follow a next business day settlement routine.
“Without the proper controls in place, customers are exposed to significant risk when large ACH debits to their accounts can occur late in the day,” said David Kretz, head of global payments and GTS strategy at the Global Transaction Services unit of BofA. A declaration. “With mobile access to ACH Positive Pay, customers can make time-sensitive decisions from anywhere and reduce worries about missing returns deadlines.”
In 2021, BofA customers using the online version of the CashPro app approved payments totaling $384 billion, double the volume processed in 2020, according to BofA. “With ACH Positive Pay, the app now has more ways for customers to make real-time decisions, which for ACH will be of greater importance when same-day ACH limits are increased,” says Tom Durkin, CashPro’s global product manager in the Global Transaction Services Unit, in a statement.
Using ACH Positive Pay, businesses can create a list of vendors approved for payments, although approvals carry expiration dates and caps on how much can be paid to a particular vendor.
Same-day activity is generally expected to be greatly boosted by a network rule change is expected to come into effect later this month. The new rule will raise the cap on same-day transactions to $1 million, a 10x increase from the current limit. The change was widely requested by ACH participants.
Nacha’s decision to increase the limit follows other steps the organization has taken recently to facilitate same-day ACH. In March last year, the network added a new settlement window at the end of the processing day to extend the time during which banks can process same-day shipments. As a result, the latest daily deadline for same-day ACH has been moved to 4:45 p.m. EST, two hours later than the old cut-off time. The move was partly a response to banks in the Pacific Time Zone now having more leeway to enter same-day volume.
At national scale, same day volume, which includes both credits and debits, has seen vigorous growth since Nacha, the governing body of the ACH Network, introduced same-day credits in 2016. Debits followed the following year. Total same-day volume stood at 169.3 million transactions in the fourth quarter of last year, up 75% year-on-year. Dollar volume was $268.4 billion, an increase of 93%.