“The growth of Same Day ACH in just over five years has been phenomenal as the payments community has welcomed this faster payment method,” said Jane Larimer, Nacha President and CEO. “Nacha has consistently heard requests to increase the dollar limit. Two years ago, it very successfully went to $100,000. Now, Nacha, the ACH Operators, and banks and credit unions across the country are meeting the need for a $1 million limit.”

The $1 million threshold is expected to create new use cases as well as expand existing uses for this faster payment method, including vendor and supplier payments for businesses, insurance claims, tax payments, and payroll funding.

ACH Network changes such as this are made and implemented in collaboration with the ACH Network’s two ACH Operators, the Federal Reserve and The Clearing House. This provides for seamless interoperability for the ACH Network.

“The Federal Reserve is proud of the role we play in evolving and enhancing ACH as a payment option through delivery of FedACH® Services,” said Cheryl Venable, Executive Vice President and Chief of Payments Operations for Federal Reserve Financial Services. “The $1 million limit for Same Day ACH transactions is responsive to industry demand and an excellent example of how the ACH Network is evolving to meet market needs and support innovation.”

“The need for faster payments has never been more evident,” said Jason Carone, Senior Vice President of ACH Product Management, The Clearing House. “During the pandemic, businesses and consumers shifted to faster payment methods and that trend is continuing. Increasing the Same Day ACH transaction limit to $1 million is good for not only businesses and consumers, but for the entire economy.”

The higher per payment limit follows a year of remarkable growth for Same Day ACH, in which volume and value rose 74% and 105%, respectively, over 2020. More than 1.5 billion Same Day ACH payments have been made since inception in Sept. 2016.

“The success of Same Day ACH and the enacting of the new $1 million limit is further proof that the modern ACH Network is helping meet America’s growing need for faster payments,” said Larimer.