Banking is about to get faster

The fast pace of daily life means faster banking too

Technological improvements have led to instant service in a lot of areas of our lives in recent years, including banking. All this technological improvement and sped-up timing have obvious upsides, like being able to pay a bill immediately, check your voice mail while waiting for a coffee, or ordering items to be shipped directly to your home without having to go anywhere. But convenience has a downside as well: sometimes the pace gets to be faster than we are used to keeping track of.

For instance, in the past both the mail and check or payment processing took a couple of days, which some people might have found themselves relying on if they weren’t keeping good track of their account balances. That lag is about to go away.

Starting on September 15, 2017, the regulatory agency NACHA will activate a new rule allowing faster processing of electronic payments. This rule will affect all consumers, merchants, and financial institutions in the U.S.

This means that when you provide your banking information to a merchant for payment, the amount of the debit may be withdrawn from your account the same day the payment was initiated. Since checks can be converted to ACH debit transactions, your checks might be processed the same day instead of several days later. A payment could then be returned for non-sufficient funds, and you could be charged an NSF and/or Uncollected Fee.

People who regularly check their account balances and are careful to make sure they have the money before making payments are far less likely to get an unpleasant surprise overdraft after the new rule goes into effect.

We encourage our members to carefully manage their accounts given the faster processing rule.

  1. Never make a payment unless you are sure there are sufficient funds in your account. Don’t count on having “float” time before a charge hits your account.
  2. Remain vigilant in tracking your account balances. Set up notifications for your accounts via eBanking to notify you if your account falls below a designated amount that you set, or use our mobile app to get your up to date balance.
  3. Though debit card transactions are not affected directly, make sure you track your spending to avoid having insufficient funds when an electronic payment posts to your account. Subtract any pending transactions that might not yet show in your current balance.
  4. Consider signing up for overdraft protection. If you’re concerned you could overdraw your account due to the new rule, you might find some peace of mind in overdraft protection, an overdraft line of credit, or courtesy pay. Call the Member Services Department at 301-933-9100, ext. 298 for more information.

Further information is available in our News section, including answers to frequently asked questions, or members may call our Member Services Department at 301-933-9100, ext. 298.