Electronic Payments

September 15, 2017

Effective September 15, 2017 – ACH Payments that you have authorized to come out of your account(s) electronically may now be withdrawn on the same day they are initiated.  This process change has been authorized by NACHA, the National Automated Clearing House Association, and should allow for faster processing of ACH transactions throughout the U.S.  This change is referred to in the industry as “Same Day ACH.”


What are ACH Payments? –  ACH payments are one-time or recurring payments that you authorize to be automatically debited from your account.  Some examples of these types of electronic transfers include when you give a company authorization to convert your check to an electronic payment (e.g., to pay a bill) and when you initiate payments online or by telephone using your bank account information.


How does this affect you? –  Payments that used to clear your account several days after being initiated may now clear the same day that they are initiated.  As a result, we strongly encourage you to consider your available balance when you initiate these payments.  Remember that you can monitor your account balance through Bay State Savings Bank’s convenient online banking or mobile banking platforms and that you can also set up text message alerts for balance notifications.