Research and Markets: Strategic Guide to Same-Day ACH: is Half a Solution Better Than None?

DUBLIN--(AllPayNews)--Research and Markets (http://www.researchandmarkets.com/research/914693/strategic_guide_to) has announced the addition of Javelin Strategy & Research's new report "Strategic Guide to Same-Day ACH: Is Half a Solution Better than None?" to their offering.

The settlement schedules for the Automated Clearing House (ACH) network have been in place for nearly 35 years, varying very little. In August 2010, they will change as same-day ACH is rolled out as an opt-in service by the Federal Reserve, one of NACHA's two operators. This report reviews the reasons behind the Feds approach to same-day ACH, gauges the potential success of the strategy, and assesses what needs to be done to build the value proposition for same-day ACH.

Primary Questions

• What is the Federal Reserves approach to same-day ACH, and what factors govern its strategy?
• What obstacles do same-day ACH services face in the U.S. market?
• What is the NACHA position on same-day ACH?
• Should ACH credits be supported as a same day transaction option?
• How will the ACH network compete over the longer term with card or wire networks? What changes need to occur to support that strategy?

Methodology

This report is based on materials and on qualitative interviews with senior managers from organizations that are active in the ACH network. These include both of the ACH operators, the Federal Reserve and The Clearing House/Electronic Payments Network (EPN), as well as NACHA The Electronic Payments Association; the Association for Financial Professionals (AFP); large and midsize financial institutions (FIs); regional payment associations (RPAs); ACH services vendors; and commercial users of ACH services, including merchants, billers and third-party originators.

Key Topics Covered:

• Overview
• Primary Questions
• Methodology
• Executive Summary
• The Federal Reserves Approach and Strategy
• Specific ACH Debit Transaction SECs Are Eligible
• Financial Institution Participation Is Optional
• Banks Can Determine an Originators Eligibility to Participate
• File Requirements Remain Standard
• Processing Schedules Are Modified
• Some Transaction Pricing Applies Only to the ODFI
• The U.K.'s Faster Payments Service
• Obstacles to the FedACH SameDay Service
• The Opt-In Nature of the FedACH SameDay Service Makes It Less Desirable for Participants
• The Participation of a Single Operator Also Reduces the Near-Term Incentive to Participate in Same-Day ACH
• Limitation to Specific Debit SECs Restricts the Appeal of Same-Day Settlement
• Reduced Transaction Float for Consumer Conversion Transactions May Create Problems for Merchants/Billers and Banks
• Availability May Not Be Passed On to the Originator
• The FedACH SameDay Service Does Not Require Use of SameDay Returns
• Same-Day ACH Should Be Supported by a Rules Change from NACHA
• The Potential of Same-Day ACH
• Concerns About the Future of Same-Day ACH
• Positioning the ACH Network for the Long Term

Companies Mentioned:

• NACHA
• The Federal Reserve/Federal Reserve Bank of Atlanta
• Barclay's
• HSBC
• Citi
• Lloyds
• The Clearing House/ EPN
• RBC

For more information visit http://www.researchandmarkets.com/research/914693/strategic_guide_to

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