What should financial institutions be doing to ensure a smooth roll-out of Same Day ACH now that it's live? According to Jack Henry payments experts Deborah Phillips, managing director for Payment Strategy, and Kevin Moland, director of strategy, a lot.
Many of the changes driven by the new Same Day ACH rules are procedural, and Jack Henry is urging financial institutions to review the internal processes they’ll be using now and into Phase 2 and 3. In addition, Phillips and Moland advise financial institutions to strengthen and streamline risk review and fraud mitigation practices in order to continue handling incoming ACH items safely with the tighter processing windows. Finally, those financial institutions who plan to allow customers to originate should come up with a full-scale plan for how they will position and offer Same Day ACH.
“Financial institutions don't want to be in a position where a member or a customer asks about same-day origination, and they don't have a plan for evaluating clients for this service,” Phillips said. “Banks and credit unions also need to review originator agreements to see if changes are necessary.”
According to Phillips and Moland, financial institutions need to tackle Same Day ACH marketing, sales, and legal plans before the specifics of operational software come into play, so these are things a financial institution should prioritize now.
Read more about our discussion and listen to the podcast to learn what specific steps you should be taking to prepare. Learn, too, what preparations Jack Henry & Associates have in place to meet your processing needs now and into the future.
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