It has been almost eight months since NACHA issued the Request for Comment on Expedited Processing & Settlement (EPS). During the ensuing months, I’ve heard arguments on both sides of this initiative with many in support of EPS and others that are strongly opposed.
In my opinion, the importance of this initiative to the long-term viability to the ACH Network needs to be emphasized. Consider for a moment that:
- Today a check settles faster than an ACH transaction;
- The Internet and mobile devices have created an expectation of immediacy, even for payments;
- Alternative payment channels (aka non-bank solutions) are meeting the demand for faster clearing and settlement;
- Evolving mobile and P2P solutions are not well served by current ACH processing and settlement schedules;
- Globally, our ACH Network is far behind other geographies in implementing faster payments, and
- Faster payments will help address regulatory concerns associated with counterparty, systemic and liquidity risks.
The final rule, which should be balloted sometime this summer, will not please everyone but I believe will move us closer to a solution that will assure the long-term viability of the ACH Network.