Dive Brief:
- Nacha, the organization that governs the ACH Network, plans to increase the limit on same-day ACH payments to $10 million, the organization said in a Monday press release as it hosts the Smarter Faster Payments conference in San Diego.
- The new transaction limit will take effect Sept. 17, 2027, according to the release.
- The increased transaction limit will likely benefit invoice and tax payments, insurance claim payouts, payroll, merchant settlements and cash concentration, the release noted.
Dive Insight:
Nacha’s membership voted to raise the same-day transaction limit as more consumers are using its ACH Network services.
“Nacha has been hearing from ACH Network users that they wanted a higher limit, and we are pleased to meet that need,” Nacha CEO Jane Larimer said in the release. “With its speed and security, Same-Day ACH is helping to meet the demand for faster payments.”
Nacha’s first-quarter ACH payments volume rose 4.8% from the year prior to 8.9 million transactions, Nacha said in a press release last week. Meanwhile, its same-day ACH payments also jumped 23.6%, year-over-year, to 403 million transactions in the quarter.
The move by Nacha follows The Clearing House raising its real-time payments system limit to $10 million last year. When it announced that change in 2024, the bank-owned company said it expected the new threshold to encourage more real estate, supply chain and business-to-business transactions that generally are for larger amounts.
Nacha initially capped same-day transactions at $25,000, then increased it to $100,000 in 2020 and $1 million in March 2022, the organization noted in the release.
Aside from raising its transaction limit, Nacha is expanding the capabilities of its network in other ways. In February, JPMorgan Chase and Nacha teamed up to integrate Nacha’s peer-to-peer payment network information into the bank’s blockchain-supported data sharing system. The integration aims to reduce fraud risk and make international payments more efficient.
