In recent years, the underlying technology used for direct-deposit transactions has slowly become more “instant,” and now allows for same-day transactions. The electronic payments association NACHA is making the case that nonprofits could benefit from this shift.
The traditional ACH (automated clearing house) payment is getting faster, and that could have a lot of benefits for associations and nonprofits.
To put it another way: It could just make Giving Tuesday a little bit greener.
Over the past couple of years, NACHA—The Electronic Payments Association has been working to roll out the payment format, which (as its name suggests) pushes money to accounts without a long delay.
The industry put same-day ACH (SDA) into effect for credit transactions last year and for debit transactions in September.
NACHA, per its recent Same Day ACH Use and Demand Studyconducted in tandem with the financial technology news outlet PYMNTS.com, estimates that three-quarters of financial institutions will offer same-day ACH to business customers by the end of 2018, up from 43 percent today.Click Here to Read More