The movement towards same-day settlement for ACH is a big deal, and businesses are taking note.
When it comes to payment processing in 2017, everyone’s looking for speed. So the movement towards same-day settlement for automated clearinghouse (ACH) the network which runs eCheck or electronic funds transfer (EFT) transactions in the US and Canada is a big deal, and businesses are taking note.
That’s according to David Heun at Payment Source, who reports that more than 13 million same-day ACH/EFT payments were made over the final three months of 2016. These transactions are direct bank-to-bank transfers of funds, and do not require the middlemen of credit card processors and facilitators.
Delivering high-value payments beyond the financial scope of a credit card with that kind of speed makes it an obvious choice for business-to-business transactions, but Heun reports that merchants who are used to credit cards have so far been cautious.
It’s only natural; nobody wants to dive headfirst into a new technology if they think it’s unproven.
Competition is stiff
As Heun points out, there’s no shortage of processors offering bank transfers, or even payment options that compete with ACH itself, especially with the growth of person-to-person payment networks.
But electronic funds transfer can tap into markets that others can’t. Not only are fees lower with same-day ACH, it can serve those looking to make electronic payments without using (or maxing out) a credit card. And for business-to-business, nothing is as proven as ACH/EFT at handling big-ticket transactions and recurring payments. Combining the speed of credit card payments with the security and clarity of ACH is a win-win for any business.
ACH Processors need to stand out
According to Jeremy Epstein, managing director at ThePrivateBank, processors need to offer something unique to convince skeptical businesses to adopt ACH.
What Chargent offers is powerful: seamless integration and tracking with Salesforce that pairs all your important transaction information with the easy access to your customer data. The ability to set up recurring transactions, capture payments, and resolve any transaction problems right in Salesforce saves businesses from the headache of importing records or logging into external payment terminals. It’s all in one place.
As always, security is paramount
According to Heun, there’s concern that the speed of same-day EFT could allow for fraud to be carried out before banks can confirm the transaction is legitimate. But as GIACT’s David Barnhardt points out,those concerns may be overblown; ACH-enabled checking account fraud is a lot harder to pull off than, say, credit card theft.
And as far as processing is concerned, Chargent brings all the security features that Salesforce is famous for to your transaction data.
What’s clear is that same-day bank transfers are a game-changer for businesses weighing their options, and what Chargent has to offer may just tip the scales.