Payments made through the Automated Clearing House, or ACH, network are the heart of our nation's electronic payment system. Every bank and credit union in the nation receives ACH payments. Through Direct Deposit by ACH, 93% of people receive their pay, 94% get their federal tax refund and nearly all federal workers and all seniors and veterans receive their pay and benefits. ACH payments are used by millions to pay their mortgages, rent, student loans, credit cards and many other payments.
In the last decade, the ACH network has experienced
But one big gap slows some ACH payments down by as much as three days. While the ACH network currently processes payments 23¼ hours every business day, (and some file processing occurs on weekends),
The ACH network could provide even faster payments to American workers and consumers if the Federal Reserve expanded its hours of operation to settle payments on weekends and holidays. In the modern world, waiting several days for an electronic payment to process doesn't make sense.
The expansion of NSS operating hours has broad support — including from the Federal Reserve itself. The Board stated as an objective in its 2015 report, "
In a simulation exercise hosted by the Global Resilience Federation on Tuesday, banks and credit unions tested their ability to withstand an industrywide wiperware attack.
Expanding NSS operating hours means American workers could get paid on weekends and holidays, which is especially important for those who work shifts or gigs over weekends and holidays. They could receive Direct Deposits to their bank accounts sooner than the next banking day.
Receiving their pay over the weekend also means consumers could make timely payments over the weekend. In addition to paying their credit cards or bills, they could transfer funds between their own accounts or send money to family and friends more quickly. These transfers could all be settled over weekends and holidays, resulting in faster use of those funds.
Businesses would benefit as well. Stores and online merchants doing business during weekends and holidays could get faster access to funds from card sales, as those funds are often paid out directly to their bank accounts.
We must take advantage of this opportunity to speed up the ACH system. Expansion of the NSS operating hours is supported by consumer groups, the Fed, Nacha, and the ACH industry and it is a win-win for American families and businesses.
