What Payroll Vendors Are NOT Telling You About Same Day ACH

Paycor offers Same Day ACH to clients—just like many other vendors. But here’s what others are not telling you.

What is Same Day ACH?
With Same Day ACH, employers now have more flexibility and accuracy in issuing direct deposit payments. Employees can now receive deposits on the same day that payroll is initiated, while last-minute adjustments are no longer an issue when ensuring the right payday amount is deposited.

The Fine Print
Some payroll vendors are touting Same Day ACH as a product enhancement that they are uniquely offering. Others are emphasizing the positive aspects but failing to call out the limitations and restrictions.

*#1 Same Day ACH is not like wiring cash to an employee
Keep in mind your employees will not receive money in real time. Promising otherwise can lead to serious complications. Same Day ACH deposits would be available to ensure proper bank funds, for example, but employees wouldn’t have those funds to make a purchase or buy lunch. An employee’s bank won’t be required to fund the account before the end of their processing day, but Same Day ACH acts as a placeholder in the account to guard against overdrafts and the like.

*#2 Restrictions do apply
No international items or deposits are eligible for Same Day ACH. Deposits over $25,000 are also ineligible.

*#3 Complications exist
Payroll funds need to be wired by clients to vendors before banks will send the direct deposits.

*#4 Additional fees apply
Processing Same Day ACH deposits cost more to process for banks, which lead to fees normally not charged.

Questions? We’re here to help. Feel free to call your customer service rep or our main line at 800.381.0053

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