Same Day ACH Credits

Same Day ACH Credits

Consumers and businesses are used to getting what they want when they want it. Your groceries get delivered the same-day and you can summon an Uber in minutes. Payments, however, still tend to take a while.

Even in 2016, the quickest way to get your money from one bank to the other is to withdraw the cash and walk across the street. This is because major banks synchronous their accounts with the Automated Clearing House (ACH) network only once a day. This meant that payments would take at least a day or two to be completed.

This system is known as Classic ACH and it’s been around since the 1970’s.  Thankfully the network is now getting a much needed upgrade.

Say Hello to Same-Day ACH

The upgrade is pretty simple. The National Automated Clearing House Association (NACHA) has pushed banks to start synchronizing accounts with the ACH network three times a day. Because the accounts are synchronized and updated more often, same-day payments are now possible. American workers and businesses can now get their hard-earned money much faster.

The American payments system has lagged behind other countries. Mexico, the UK, Sweden, and Singapore are all adopting same-day payment systems. Even India has leapfrogged most developed countries and installed a quicker payment network for businesses and consumers.

These countries have successfully adopted real-time or same-day payments because their central banks have responded to the demand for such a system from businesses and consumers.  In the US, the Federal Reserve is in the process of modernizing the payment system. Upgrading ACH to same-day is part of this plan to catch up with the rest of the world.

A Deloitte report found that there were a number of reasons for this push to faster payments. The regulatory landscape is ideal, technology has developed enough to support such a system, consumers prefer the convenience and merchants see the value in a quicker service such as this.

But payment systems like these are vast, complex and highly technical. This means it is easier to build a system from scratch (the way India has done) than to renovate or upgrade an existing system. This is why the US system has taken so long to catch up. But now the upgrade is complete. A new NACHA rule compels ACH-capable financial firms to accept ach payments starting September 23, 2016. This means companies and individuals can now have their credits completed in a day. The system for ach payments debits will be expanded in late-2017. The whole upgrade is divided in 3 stages, which will all be completed in 2018.

What Does Same Day ACH Credits Mean to You?

Considering the system upgrade is so recent, there’s a lot of unknowns for businesses across the country. There are some clear advantages for the whole economy with faster ACH payments.

ACH is the most ubiquitous payments network in the country. The system is used by every bank and credit union in the country. This makes it convenient for customers and businesses to use the network for faster ach payments. So far, only private networks developed by card companies (Mastercard and Visa) have offered quick payments, but these also tend to be expensive.

Credit card transactions can cost up to 2% of the transaction and debit cards can cost close to 1%, the ach payment system charges a flat fee between 10 and 50 cents depending on volume.

Cheaper and faster payments on a wide-spread network like ACH has the potential to help a lot of businesses.

  • Payments are automated, which leaves less room for human error
  • Flat fee helps businesses preserve their profit margins
  • Quicker payments to employees, suppliers, affiliates, and vendors helps you obtain & maintain a competitive edge.

Same Day ACH Debits Coming in 2017

Same-day ach payments are not live for debits just yet. Debits will be available in September 2017. Businesses are expected to adopt ach at a faster pace by then. Customers are already more willing to spend money with a business which is part of such a trusted network. The payment network reduces the risks of fraud and chargebacks and is clearly more convenient than other traditional payment methods.  Attractive benefits like these have convinced many businesses to sign up for ACH merchant account and accept ACH payments.


A recent survey by NACHA found that 79% of consumers and 82% of workers had either received or heard of ACH payments. A majority of these people were happy with the service, thought it was quick and considered it highly secure. The survey and accompanying white paper showed that ACH was ingrained in the national consciousness and this made it the best system for businesses to use.

Now, with same-day ACH payments, the system for credits is faster and better than ever.  The network is now live and you can get start processing same day ACH credits immediately.  can start getting involved in same-day ACH payments and credits right away. The rates for this quicker services are yet to be determined by banks, but payment processors may be able to offer better rates.

Could your business benefit with same-day ACH payments?

Contact us to find out.

Debt Collectors Embrace E-Payments

Debt collectors are faced with tremendous challenges. According to PWC, the industry is transforming as the regulators add pressure and oversight to consumer collections.

Collections is still a vital part of the lending process.  For example, one in three Americans have had an unpaid bill or loan reported to a debt collector in the past.

This means that the services of debt collectors are still in demand, despite the regulatory oversight. The industry must adapt to the new rules and work with the authorities,.  While continuing collection efforts at the same time.

One way to comply with the rules and ease the process is to offer an easier way for debtors to pay back their loans. Many debt collectors are embracing e payment systems to make their operations more efficient and increase the rate of collections.

Use Technology To Your Advantage

A key takeaway from the PWC report is the use of technology to boost your returns. Many of the routine processes can be automated by deploying an e payment system.  This frees your staff to focus on collecting more by building relationships with the debtors.  

Staying in touch with debtors and winning their trust is essential. Once the debtor has agreed to pay back the loan, the repayment process can be automated so that regular payments are taken from their account with minimal effort. A report by Tata Consultancy Services finds that the future of debt collection lies in automation.

Recurring payment plans are easily set up through your e payment system. Payments automatically are deducted from debtors’ bank accounts on a regular basis.  As a result, cash flow increases and the need to recontact debtors for payments decreases.  

The most common e payment system in the US is the Automated Clearing House, one of the most secure e payment systems in the world. ACH payment processing includes benefits like fast notifications if something goes wrong, added security, lower costs and a more efficient e payment system. You can also offer multiple payment channels via a virtual terminal, which means borrowers can pay through mail, phone or even fax.

Power of Automation 

Not only will a e payment system streamline the process of collecting debts, it will also help you learn from the data collected on payers.  Information is power.  

Extensive transactional & management reports  can help you figure out patterns and behavioral traits that can be used to identify where your strategy is working and where it isn’t. Specialized software can help you locate the debtors, manage debt and keep a track of missed payments.

E payment system data can easily be imported and exported to your internal systems. Increasing productivity, decreasing expenses, and streamlining administrative functions.


Debt collection is a high risk industry and the recent drive to tighter regulations is adding pressure to this sector. But as defaults and borrowing grow, demand for your services is likely to expand.

You can streamline the process of collecting debts by applying technology. E payment systems help automate the collections process.  Freeing you and your staff to concentrate on collecting more money from debtors.

Have you considered automating payments yet?

Contact us today to set up your debt collection merchant account.


Boost Security and Cut Fees with eChecks

eChecks Safe, Secure & Save You Money

Business has moved online in a big way, but payments have lagged behind.

If you deal with customers in the United States, the payment infrastructure you use could be vulnerable to attack. Your customer data is at risk and this lack of security could be affecting your business. Cash and cards are the weakest link, which is why cashless payment solutions like echecks can help you boost security and convenience for your customers.  

The banks and traditional institutions that support these payments are still decades behind in terms of security and infrastructure.

Businesses have been paid by cash and checks for as long as banks have been around. Plastic payment options such as debit and credit cards are more recent developments, but they both lack the safety features you’d need to stay safe online.

Credit card fraud is now so common that the US accounts for more than 50% of all credit card fraud in the world. Banks have failed to make plastic payments secure and this has cost the economy trillions of dollars over the years.

Security, of course, is the biggest concern, but let’s not forget the lack of convenience with current payment methods.  Cash is hard to manage, checks are unwieldy, and credit card transactions come with extortionate fees.

A Better Way

Boosting security and convenience for your clients in the U.S. is incredibly important.  Experts see cash and physical cards as the weakest link in our payment infrastructure. Which is why merchants are encouraged to go cashless for better protection.

US customers account for more than 51% of payment fraud worldwide. Which is why a lot of businesses have turned their attention to newer forms of payments such as echecks.

An echeck is the online replacement for physical, paper checks. They are quick, convenient and a lot cheaper than traditional payment methods.

Types of eChecks

Online payments with echecks has been available for many years.  However, the rapid rise of online bill payments has accelerated the demand for the payment method.  The vast majority of Americans regularly pay household bills online. 

As a result, US consumers now embrace echecks as a trusted payment method.  Online shoppers expect to be offered an echeck payment option at checkout regardless of what is being purchased.  

An echeck comes in two flavors – Check21  and Automated Checking House (ACH).

Check21 is quicker, while ACH is cheaper. Both the options work in fundamentally the same way – money is debited from the client’s account and deposited to yours.

ACH merchant accounts are designed for regular payments, like a direct debit for bill payments or repeat business. The system also uses a national network of payment providers and banks to process the payment. It could take up to 3 days for such a transaction to clear.

Check21 merchant accounts is a quicker method, where the major banks and institutions in the system transfer cash by the end of the working day or by the next working day.  

From, the customer’s perspective, both the transactions appear to be exactly the same. Both echeck methods have a similar method of transaction online and the speed and convenience is nearly identical for the customer.  

Not to mention, the security features built into the ACH and echeck system.

You can cut procession fees by up to 60% with echecks compared to credit card processing.  And capture sales from customers that don’t have cards, are maxed out on cards, or who simply prefer to pay you with a direct debit from a bank account rather than using a card.


More than 30% of online retailers now offer echecks as an alternative payment method at checkout.  Alternative payments will be more widespread in the future. Your business will gain a clear competitive advantage today when you accept checks online.

Have you considered the efficiency and security of your payment options?

Contact today


Considering ACH Payments? Here are the Benefits.

If you’re looking for an alternative payment method to offer your customers, you might have considered using ACH payments. Electronic payments are becoming increasingly popular among consumers and merchants alike. Many Americans now prefer to pay electronically rather than using a paper check.  

This is confirmed in research from the Federal Reserve, which shows the use of paper checks is on the decline. That fact shouldn’t be surprising because, as detailed below, there are some major disadvantages to using paper checks.

  • It’s easy to mislay a check
  • They can get lost in the post
  • They take longer to clear
  • Some consumers are careful about writing them as they are worried over possible fraud
  • Others are concerned about the environment and want to go paperless where they can
  • Many businesses aren’t accepting checks as a payment method anymore

What is an ACH payment?

An ACH payment or E-check is an easy way for a consumer to pay their bills or for purchases electronically.  ACH can be used for one time or recurring transactions.  

With ACH, money is electronically debited from buyers’ bank accounts.  Funds are automatically settled to your business bank account.  

Benefits of Accepting ACH Payments

Here are some of the main benefits of accepting ACH or electronic payments.

Recurring payments

There aren’t many business owners that wouldn’t appreciate having fewer things on their to-do list. When you sign up to accept an ACH payment, you’re offering your customers a simple way to pay on a recurring basis.  To help your business run even more smoothly, you can ask your merchant processing provider to automate any invoices so they’ll be sent out on your behalf – meaning less work for you.

More efficient than checks

Choosing to accept ACH payments is quicker than waiting for a check to clear. Although times can vary, typically, an ACH payment can take as little as 2 to 3 working days. However, it can take up to five business days on some occasions.  This will aid cash flow and enable faster settlements for outstanding bills.

Ability to offer alternative payment methods

Consumers love choice – so offer them as many payment options as possible. Many merchants concentrate on credit card and cheque payments, but with the declining popularity of checks – and with the reluctance of some consumers to provide their credit card details online – an electronic transfer in the form of an ACH payment will give them a greater choice.

Lower costs

Fees for ACH payments are less expensive than processing credit cards. If, like most merchants, you want a simple method to reduce your business overheads and increase profits, ACH payments could be an ideal choice.

Added security

ACH payments offer both you as a merchant and your customer an added layer of confidence and security.  There is no need to worry about the possibility of signature forgery.  And, the payments will go through a verification process before they go ahead, thus protecting both you and the consumer.

Fast notification of payment problems

You will also be notified quickly if there is problem with a payment. This means you can spend less time worrying if a credit card or check payment is going to go through, which will help to reduce some of the stress that can be associated with running a business.


As you can see, there are many benefits to you as a merchant and to your customers when you opt to receive payments electronically.

Offering ACH payment as a payment method will provide your customers with greater choice and convenience. While increasing your cash flow, lowering your operating expenses, and automating your business operations.  

How are you accepting electronic payments from your customers?  

Contact today

Why Echecks are Replacing Paper

What is an Electronic Check

An eCheck or electronic check is an electronic version of a traditional paper based check.

An echeck account gives you the ability to automatically debit funds from your customers bank accounts.  Funds are then deposited into your business bank account.

Customers  provide their bank routing & account numbers.  Along with an authorization for you to debit their bank account for the money due. That’s all it takes.  

Echecks are the modern way to accept check payments. No trips to the bank. No paper to deal with.  

Great, But How do they Work?

You can accept checks online with a simple API integration to your website. You can take check by phone, fax and email orders through a virtual terminal.  

ACH echecks are remarkably effective for recurring payments.  Customers rarely change bank accounts. Payments continue uninterrupted month after month, with no need to update account information.  

Compare this with card payments.  Since one in five cards are reissued each year, you have to constantly update card data in order for recurring transactions to be approved.   Which is time-consuming, labor intensive, and costly.

Numerous Benefits of Electronic Checks

Echecks  save you time and lower your operating expenses.  And you eliminate the hassle of dealing with paper checks.  

You can easily and digitally send and receive payments without moving an inch. However, these aren’t the only advantages of eChecks.

Minimizing Processing Expenses up to 60% – Electronic check processing can save you 50-80% over the cost of credit card processing

Quick Funds – eChecks are processed electronically and clear much more quickly than paper items.

eChecks are Greener – No more dealing with paper. eChecks minimize carbon emissions by saving 67.4 million gallons of fuel and reduce greenhouse gasses and emission by more than 3.6 million tons.


Paper checks are quickly becoming extinct. Electronic checks are faster, safer, and more cost effective. And are rapidly becoming the payment option of choice for businesses that accept check payments.  

How are you processing your check payments?  

Contact today 


Preventing ACH Payment Fraud

Innovation within the payment industry frequently leads to the opening of new opportunities for fraudsters. In order to avoid the costs associated with fraud attacks, all parties involved in the payment process need to improve their fraud prevention strategies.

Fraudsters display unparalleled resourcefulness when it comes to discovering and exploiting loopholes.  The best moment to do so is when the payment environment undergoes some major change.

How ACH Fraud Is Possible

ACH merchant account fraud can be perpetrated both over the phone or on the internet.

For example, in a common fraud scheme, the fraudster will convince the account holder to disclose their confidential financial information over the phone.  The information is then used to defraud the account holder.  

The most sophisticated type of ACH fraud involves the infection of computers with a virus that will start looking for specific keystrokes performed by victims while they log into their bank accounts. Fraudsters will use this information to create their own login credentials and transfer funds from the hacked accounts to their own untraceable overseas accounts.

It is not surprising that the volume increase of ACH payments has been going hand in hand with a proliferation of fraud attempts. Since fraudsters rely on the human factor to pull off their fraud attacks, raising awareness about fraud and popularizing means to protect oneself from them seems to be the right way to go.

The Information Security Media Group carries out a yearly survey of banking institutions that is meant to provide an overall industry perspective on fraud and how it evolves. The 2014 Faces of Fraud survey shows that the biggest stumbling block against fraud prevention is the lack of awareness among customers regarding fraud, and their unwillingness to accept additional security features or more sophisticated authentication methods.

Impact of Same-Day ACH on Fraud

Lack of customer awareness places additional burdens on financial institutions and companies to prevent fraud through other means, such as data analysis, automated software, or manual review. The introduction of Same-Day ACH, a new feature that will decrease the settlement time of ACH payments, will prove to be a game changer in terms of fraud prevention as well.

Guardian Analytics describes some possible scenarios that Same-Day ACH will make possible. Fraudsters will most likely try to take advantage of the spike in volume that will occur right before the deadline for transaction submission. For example, they might submit a high number of relative low-value transactions or they might take the time to harvest information about the account holder that would enable them to create payments which will seem legitimately enough to pass a fast review.

Prioritizing Fraud Prevention

A comprehensive fraud prevention strategy includes customer profiling, real-time transaction monitoring, data analysis, and secure authentication.  Guardian Analytics suggests that the successful strategy after the introduction of Same-Day ACH should rely on the automation of some existing fraud prevention tasks, which should enable financial institutions to assign more resources to complex behavioral analytics.

Regardless what strategy financial institutions will eventually implement, the introduction of Same-Day ACH will confirm the widely-accepted assumption that fraud is a constantly changing phenomenon.

Do you want to prevent fraudulent ACH payment transactions and safeguard your business?