ACH and Check Processing - A little Info to Checkout

ACH payment an electronic payment system made through Automated Clearing House network. ACH is a secure method of transferring payments without errors, fast and time-saving. The Layman’s term defines ACH payment processing an electronic transfer of money between two accounts without the physical movement and paperwork. There are many typical uses of ACH Payments, as paying fees, bill payments, transacting funds from one bank account to another. Using ACH Payment processing solutions is eco-friendly because natural resources like paper or fule are hardly used to complete the transaction. All the transactions are made is being electronic.

The blog lists top Benefits of ACH and Check Processing for Merchants

·         It eliminates the heavy deposit fees and NFS return fees on those check not clearing. Radically reduces the banking fees.

·         All the checks processed and returned electronically are charged with little transaction fees.

·         Electronic fund transfers are processed in 1-2 business days. Fater transaction leads to faster NFS notification.

·         Fastest settlement of payments, checks are processed ahead of the paper item and cleared or precluded faster.

·         Saves money virtually eliminates the cost associated with preparing an electronic invoice.

·         ACH Payment Processing reduces the overhead costs. It is less costly and charges a flat fee per transaction of total sales.

·         The easy settlement the system matches the paid checks and list those checks that did not clear. All the NSF checks can be automatically resubmitted.

While accepting e-checks both the merchants and customers save money as the processing fee for e-checks is too lower than other types of online payment processing systems. Accepting card payments also include transaction fees this can be avoided with ACH Payments by the customers.

Radiant Pay specializes in ACH and Check Processing helping small and biggie industries to reduces the overheads cost and increase the sales with our tailor-made electronic payment processing solutions.

Frauds Dangers Connected with ACH and Wire Transfer

Every business bear the risk of payment frauds, due to nature of business or some other reasons. Almost three quarters of respondents were targets of attempted or actual fraud, while 42 percent reported increased fraud attempts. Fraudulent checks were used most often, followed by wire transfers, cards and ACH.

With high-tech global technology in payment industry it made check acceptance and clearance cheap and easy, but also it made easy to commit fraud activities. Increased in the use of automated transaction coms with an increased in fraudulent activities. The FBI saw a 38 percent increase in wire transfer fraud in 2011 alone. The 2014 Association for Financial Professionals Payments Fraud and Control Survey reported that payment fraud from ACH debits in 2013 affected 22 percent of responding organizations, while payment fraud from ACH credits in 2013 affected 9 percent. Payments from wire transfers in 2013 affected 14 percent of respondents, up from 11 percent in 2012.

ACH and wire transfer appears very similar with few differences. Wire transfer move money between financial institutions. With ACH Transaction information is sent in a batch to an automated clearing house, which clear the ACH payments and sends to bank and the clearing house acts as a middle man takes long time up to 3 business days to clear the payments. 

Being popularity of these types of payments there is greater accessibility of fraudulent activities. The primary targets are small- to medium-sized banks, businesses, schools and other organizations. These targets often rely on traditional security systems and applications, therefore increasing their risk.