Paychex, Inc., a provider of human capital management solutions for payroll, HR, retirement, and insurance services, has announced the release of Same Day ACH Debits functionality for clients using direct deposit.
With Same Day ACH Debits, employers now have the flexibility to reverse a payroll and have money debited from employee bank accounts on the same day, avoiding the costly lag time often associated with payroll reversals.
The announcement affirms Paychex’s leadership in the payments industry and coincides with the first day Same Day ACH Debits are made possible by NACHA, the Electronic Payments Association, building upon last year’s introduction of Same Day ACH payment capabilities.
Same Day ACH Debits offers employers a new level of payday flexibility by enabling them to initiate corrections or reversals the same day the payroll is processed. Previously, reversed payrolls made on payday for direct deposit were processed the next business day, limiting the ability to successfully collect funds.
“In this day and age, business owners want and expect their money to move faster. Paychex is proud to offer our clients Same Day ACH Debits transactions on the first day it’s available in the payments industry,” said Paychex vice president of corporate strategy and product management Tom Hammond. “With this new offering, our clients can rest assured that Paychex has the solutions to pay their employees in the most timely way possible, and make corrections, even if they are made at the last minute.”
Same Day ACH Debits is part of an initiative led by the Electronic Payments Association, NACHA, to introduce faster capabilities in the payments industry. In September 2016, NACHA launched Same Day ACH for payments, allowing payments to process on the same day the transaction is initiated rather than on a future date.
For more information on Same Day ACH Debits, visit NACHA’s dedicated Same Day ACH Resource Center at https://resourcecenter.nacha.org/.