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Frequently Asked Questions About ACH Debits (FAQ)

Effective Friday, Sept. 15, there will be a change to the way electronic payments, also known as ACH debits, are processed by the Federal Reserve. On that date, the Federal Reserve will start processing most ACH debits on the same day they are transacted.

Below are some Frequently Asked Questions (FAQs) regarding this mandated change:

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Q: Which ACH debits are eligible to be same day?

A: Nearly all ACH debits will be eligible. These include both ongoing payments (e.g., a monthly debit for your utility bill) and one time payments. The only payments not affected will be international transactions and transactions above $25,000. 

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Q: Will all online payments be processed same day?

A: No. It depends on the decision of the institution being paid. There is a cost to sending payments for same day processing.  For example: A major utility may decide it is cost effective to elect same day ACH processing. Members making ACH payments to that utility will see their payments post and clear same day. Alternatively, a local health club may decide that it is not cost effective to elect same day ACH processing. Members with ACH debits to that health club will not see their payments processed same day.

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Q: Will TTCU’s Debit Card payments clear my account faster?

A: No. TTCU’s Debit Card transactions do not follow the same process as ACH debits. They will not be affected. However, some Debit Cards from other institutions that link to your TTCU account (such as debit cards from Target or Nordstrom) may follow the ACH process. If so, they may clear and post same day.

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Q: Will my TTCU bill payments clear my account faster?

A: At this time, TTCU’s Bill Pay process is not changing. However, this may change in the future.

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Q: Will paper check payments be processed faster?

A: In some cases, yes. Some merchants may convert paper checks to ACH debits for processing and be affected by same day ACH processing. It depends on the institution processing your paper check.

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Q: Will payments for my TTCU credit card balances be processed faster?

A: At this time, payments to your TTCU credit card balance are not changing. However, this may change in the future.

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Q: What about Paypal?

A: Paypal debits to a TTCU account are ACH debits. As such, they may be affected by this new ACH payment processing schedule. Paypal credit card payments are not ACH debits, so they will not be affected.

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Q: Will recurring payments be subject to same day ACH?

A: It depends on the institution receiving the recurring payments. If they decide to process their payments using same day ACH, then the recurring payments will process same day.

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Q: Why is TTCU doing this?

A: The ACH network (the National Automated Clearing House Association, or NACHA) that manages the network is making these changes to improve payment efficiency. The new schedule affects all financial institutions, including TTCU. TTCU had no choice in the matter.

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Q: Can TTCU continue to process payments according to the old schedule?

A: Whether or not a payment is sent for same day ACH processing is the decision of the institution being paid. It is not determined by TTCU. TTCU, along with all U.S. financial institutions, is required by NACHA (the manager of the ACH network) to accept same day ACH processing. Therefore, TTCU is not able to retain the current debit clearing schedule. 

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Q: What is TTCU’s Overdraft Policy for ACH payments?

A: If an  ACH is presented to your account and your Available Balance is not sufficient to pay the transaction, TTCU will first attempt to make a transfer from a share savings and/or line of credit product if one has been set up as part of your overdraft protection options.  If the Available Balance in your Line of Credit and/or Share Savings account is insufficient to cover the overdraft, payment of the item will depend on whether or not your checking account has Privileged Assurance. Through Privileged Assurance, we will pay the item at our discretion.  Regardless of whether or not we pay an item or return it unpaid, we will charge an overdraft or NSF fee of $32. 

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Q: How can I avoid overdrafts caused by same day ACH debits?

A: You should only make a payment if you have a sufficient Available Balance in your account to cover the payment. Get in the habit now of planning for funds to clear at the same time you make your payment. Plus, both TTCU’s Online Banking and Mobile Banking provide you with account access on-the-go and can help you stay informed of your balances. You may want to open a Personal Line of Credit to protect yourself against overdrafts.  Learn more about a Personal Line of Credit by contacting TTCU Member Services at 800-622-2535 or click here to apply. Line amounts start at $500; subject to credit qualifications.

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To read our News post regarding this change to ACH Debits, click here.  If you have any additional questions, please contact TTCU Member Services at memberservices@ttcu.org or 800-622-2535.