Same-Day Payments Begin September 15, 2017

08/22/2017

Same-Day Payments Begin September 15, 2017

As part of a national mandate to improve and modernize the U.S. payments system, you may have already noticed a change in the times during the day that North Shore Bank applies electronic Direct Deposits to your account. This change was made to help provide you with faster access to funds for same-day Direct Deposits to your account.

Beginning on Friday, Sept. 15, 2017, there will be a change in the times that we apply certain electronic debit payments to your account for electronic debits, which are commonly known as Direct Payment, Direct Debit, ACH Debit, Electronic Check or e-Check, and other similar terms. They are different from your debit card payments and ATM transactions.

Merchants and billing companies may offer you the option to make a same-day electronic payment, such as to pay a bill or to transfer funds, and the funds could be debited from your account as soon as that very same day. For example, if you have a bill due on the 25th of the month, the billing company might allow you to call or use its website on the morning of the 25th to make an on-time payment. Your funds will then be debited from your account on the 25th.

While these types of payments won’t be reflected on your account balance as quickly as your debit card and ATM transactions are, they could post to your account throughout the day as we receive files. This will allow you to have greater access to accurate information about your actual available account balance more frequently throughout the business day.

What You Should Know

  1. Automatic payments could come out at any time during the day, which could cause an overdraft on an account.
  2. You should understand that when you authorize a merchant or biller to debit your account with your financial institution, the merchant or biller should include information or a statement, provide about the timing of the payment. If the merchant or biller offers you the option to make a same-day payment, it might be referred to as a same-day payment, or noted that the merchant or biller intends to collect the funds as quickly as possible.
  3. If you have pre-authorized an electronic payment, such as a recurring mortgage or insurance payment, then it is very likely there will be no change to the time that these payments are posted to their account. As always, your financial institutions, including North Shore Bank, will receive and post these payments normally as designated by the transaction effective date.
  4. You should always have sufficient funds in your account to cover every payment you make, authorize, or initiate, and you should frequently review your account statements and transactions.

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