![]() By leveraging balance checks and instant ACH verification technologies, organizations can mitigate ACH returns and protect against NSF and overdraft fees by having a clear view into available funds. This new requirement helps combat fraudulent activity by requiring originators to validate consumers’ account information before a debit transaction occurs. With ACH payments growing exponentially, so does the risk of fraudulent activity. ACH Forces Better Fraud ControlsĪ new rule from NACHA went into effect on March 19, 2022, that requires originators to establish account validation and routing number verification methods as part of their fraudulent transaction detection systems. With ACH, recurring payments last as long as the bank account remains active and there’s no risk of a failed payment due to outdated information. This is more annoying for the consumer and leads to a high number of credit card failures for the business. With recurring payments on credit cards, consumers have to update their information every time they get a new credit card, which is typically every 3 years. For ACH debits, the options are either “same-day” or “next-day” payments. For ACH credits, options are either “same-day,” “next-day,” or “2-day” payments. But, the reality is the modern ACH Network offers choices in how fast things are processed. How long do ACH payments take? The general assumption is that ACH payments take 3-5 days to process. ![]() On a $500 transaction, this is the difference between $5 and $2.50, which adds up over time. For instance, even if the credit card transaction fee is just 1%, ACH tends to be only 0.5%. However, the costs tend to be significantly less. ![]() ACH is More Cost-EffectiveĪCH transactions work much the same as credit card transactions with no set fee. Is accepting an ACH payment better than credit card or check payments? Here’s the bottom line.
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