The National Association of Federally-Insured Credit Unions (NAFCU) voiced its concern with the Treasury Department about a delay to a same-day automated clearing house (ACH) ruling that could harm credit unions and depository institutions.
The Treasury Department’s Bureau of Fiscal Service proposal clarifies the roles and responsibilities of ACH network participants and incorporates amendments to ACH operating rules. The proposal, however, states that the implementation of Phase 1 same-day ACH amendments will be delayed with respect to government receipt of same-day credit entries.
“The uncertain implementation schedule for same day ACH processing and origination may represent an ongoing challenge for credit unions and their members—particularly those receiving federal benefit payments,” Andrew Morris, NAFCU’s regulatory affairs counsel, said.
Processing of same-day credit entries received by agencies will not start until Aug. 30, 2017. The origination of same-day entries will be governed by future guidelines.
“NAFCU is concerned that selective participation in same-day ACH defeats the purpose of the financial sector’s transition to the same-day standard,” Morris said. “Fiscal Service has explained that this delayed implementation date for same-day processing reflects coding and reporting changes, and that testing must be undertaken on Fiscal Service’s ACH credit processing systems. However, federal agencies have had more than a year to anticipate and plan for Phase 1 implementation.”
Morris also expressed NAFCU’s unease about federal agencies changing ACH payroll file numbers without notice, which delays processing of ACH entries.
“NAFCU asks that Fiscal Service evaluate and correct certain practices related to agency handling of payroll file numbers,” he said.