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#661786 - 01/05/07 04:52 PM ACH/Direct Deposit Question
t020928 Offline
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Joined: Sep 2006
Posts: 11
Has any one heard of a bank allowing for a direct deposit to be deposited into the account on the day before the payment day is set to be, AND posting that money to cover items that come through the account.

Example: Person is paid on friday. Direct Deposit is reflected on account via IB on thursday @ 7pm. Customer Claims that deposit also covers items that process thursday.

its my understanding that if money is to be deposited on friday, the money becomes available after all of the postings for Thursday's business day, and will only cover items for Friday's business day.


hope that was specific enough.
thanks
DH

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#662011 - 01/05/07 07:51 PM Re: ACH/Direct Deposit Question t020928
--houri-- Offline
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Joined: Sep 2006
Posts: 94
Los Angeles, CA
So you're saying that the settlement date on the ACH file is Friday, but your Bank posted it early - on Thursday? I --THINK-- that if you choose to post it early, then you have to make it count for the customer. But if the Settlement Date was actually Thursday, then you are definitely required to honor it as Thursday's deposit.

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#662029 - 01/05/07 08:00 PM Re: ACH/Direct Deposit Question --houri--
John Burnett Offline
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The only requirement is that you make the funds available for the customer's use at opening of business (or 9 a.m. at latest) on the Settlement Date. That's NACHA's rule, although they permit you to make funds available earlier if you wish. Reg. CC essentially says the same thing, since Settlement Date is when you'd have funds finally credited for your use the fund the credit.

You are not obligated to make those funds available for inclearing items on Thursday just because IB says the transfer has arrived. Those funds are every bit as unavailable as the part of the customer's IB balance that's held because it was deposited by check.
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#663022 - 01/08/07 09:57 PM Re: ACH/Direct Deposit Question John Burnett
t020928 Offline
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Joined: Sep 2006
Posts: 11
This situation came up because a customer claimed that another bank made her direct deposit available on thursday and we (the big bad bank) did not make it available until friday, THE DAY SHE IS SUPPOSED TO BE PAID.


So I asked this because it didnt make sense that a bank would make the deposit available early. I understand that these deposits sort of sit in a queue until the day the bank is instructed or encoded the fund to be released and deposited into the account, so I was confused that 2 banks (similar in nature both in top 25 US bancholding companies) would do it differently.

DH

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#663084 - 01/08/07 11:02 PM Re: ACH/Direct Deposit Question t020928
John Burnett Offline
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John Burnett
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As noted above, the receiving bank has the option to provide access to the direct deposit before it's due. However, that can be risky, because a direct deposit could be reversed (doesn't happen often, but it can). It also is letting the customer have access to funds that the bank doesn't yet have. It's the electronic equivalent of knowingly paying against uncollected funds.
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#663177 - 01/09/07 01:44 PM Re: ACH/Direct Deposit Question John Burnett
HappyGilmore Offline
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Pulling people out of the ditc...
many credit unions and small banks post the ACH on the day received, regardless of settlement date.
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