Same Day ACH

Same Day ACH

Same day ACH is now a reality for initiating credits.  For debits, same day ACH will be available next year.

 ACH is a form of Electronic Funds Transfer or EFT.  Each time you pay or receive salaries and wages, make direct deposits, pay for utilities or conduct any other transaction, the funds move through the ACH network.

The National Automated Clearing House Association or NACHA is the organization that regulates the activities of the ACH. It has initiated a new and innovative additional network functionality to streamline and speed up the fund transfers.

This approach is termed as Same Day ACH. Here’s how it works.

 Same Day ACH Windows

Prior to same day credits processed through the ACH network, recipients had to wait at least a day, and often more, to receive the funds.

The new Same Day ACH system which went into effect in September 2016 offers users, banks, and financial institutions the facility of two additional windows for processing credit transactions:

  • The morning window that ends at 10:30 AM ET, with all transactions getting cleared at 1:00 PM
  • The afternoon window that ends at 2:45 PM ET, with all transactions getting cleared at 5:00 PM

These windows make it possible for the speedier movement of funds between accounts. As long as payments are made within the specified time frames, credit transactions are processed the same day they are initiated. In this way, recipients of funds can access the money by the end of the business day.

Conditions for Same Day ACH

To make use of this facility, banks and financial institutions must comply with certain conditions.

  • International transactions are not eligible for Same Day ACH
  • Transactions of value above $25,000 cannot qualify for Same Day ACH
  • A Same Day ACH fee of 5.2 cents per transaction is applicable on the transaction. This fee can help RDFIs recover some of the costs they’ll incur for providing the facility and is paid by the ODFI or bank initiating the Same Day ACH transfer.  

Remember, though, your rates for same day ACH will be higher than the base fee charged to the banks.

Conclusion:  Benefits of Same Day ACH

Businesses, individual consumers, banks, and other financial institutions will find that the Same Day ACH is highly advantageous in many ways.

  • Quick exchange of business to business payments and information
  • Consumers can pay bills even on due dates without incurring penalties for late payments
  • Consumers can instantly move funds between the various accounts they hold
  • Companies can pay hourly wages to their workers and if needed, make emergency payroll payments
  • Employees can have fast access to their salaries and wages
  • Receiving businesses collect payments faster and thus, improve their cash flow processes
  • Goods and services can be bought and sold faster because of the availability of instant finance
  • More economical system for expedited payments and receipts as compared to other options for collecting and receiving funds
  • Consumers can receive payments quickly in times of emergency situations
  • Customers can make quick decisions and take action when managing their finances and investments.

How can your business benefit from Same Day ACH?



ACH Superior to Checks

If you’re looking for an alternative payment method to offer your customers, you may be considering using ACH payments.

Electronic payments are becoming increasingly popular among consumers and merchants alike. Old fashioned paper checks are on the decline.  Yet, electronic check processing through the ACH network is growing like wild fire. 

The decline in the use of paper checks is confirmed in research from the Federal Reserve.  That shouldn’t be too surprising since there are major disadvantages to paper checks including.

  • Paper checks are easy to misplace.
  • Consumers can claim that the check is “in the mail” or was not received by you
  • Electronic transactions clear much faster than paper items
  • Some consumers are careful about writing checks due to worries over ID theft
  • Younger buyers prefer electronic payments over paper checks
  • Consumers are concerned about the environment and want to go paperless where they can
  • Many businesses find accepting paper checks is a major hassle

What is an ACH payment?

An ACH payment or e-check is an easy way for customers to pay for goods or services online, by phone, mail or fax. Customers provide bank information, including routing & account numbers.  Payments are electronically debited from the consumers’ bank accounts and automatically credited to your business bank account.

You have full online reporting to track all transactions.  And payment data is easily imported & exported to your internal accounting systems.  Increasing productivity, decreasing expenses, and streamlining business operations.  

ACH payments can be used for one time payments. Or recurring billing plans can easily be setup so payments reoccur on a regular basis.

Benefits of ACH Payment Processing

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 you on a one-time or recurring basis.  

More efficient than checks

Choosing to accept ACH payments is quicker than waiting for a check to clear. Electronic transactions have higher priority than paper checks when clearing through the Federal Reserve.  Faster clearing helps your cash flow.   

Offer alternative payment methods

Consumers love choice – so offer them as many payment options as possible. Many merchants concentrate on credit card payments, but that is no longer enough. ACH payments give customers without cards, are maxed out on cards or who simply prefer to pay with bank debit an alternative to cards.  

Lower costs

ACH payments are cheaper than card processing. For low and standard risk merchant merchants, flat rates can apply.  For high risk merchants, ACH payment processing rates are always less than cards.  If you want an easy way to reduce your business expense and increase profits, ACH is an ideal choice.

Added security

The ACH payment system is one of the most secure methods of electronic funds transfer in the world. Millions of business, consumers, financial services, and government agencies use the ACH network to receive and send payments.  


Accepting ACH payments gives your customers a trusted method of paying you.  The growth of online bill payments expanded so that Americans are now comfortable paying for goods & services on a regular basis with echecks.

At the same time, you benefit by getting your money quicker, reducing operating expenses, increasing productivity, and expanding your customer base.      

How can ACH payments help your business?





How Adult Merchants Increase Sales with ACH Payments

Adult Merchants Offer Discreet & Secure Payment Methods

Content is king online.  Adult merchants constantly update content and reach out to audiences across the globe. Many adult merchants have a significant following of loyal customers.  

However, the risque content offered by adult merchants, combined with the need to control access to the the content by minors, can create hurdles when it comes to obtaining payment processing accounts.     

Challenges of Credit Card Processing for Adult Merchants

Adult content, dating services and adult toy stores all offer goods intended for people over the legal age. Age restrictions are difficult to enforce online. In countries like the United Kingdom and Germany, there are severe restrictions on the credit cards used for these services, to ensure only adults can access the services.

Although these services are federally legal in the US, adult merchants have trouble gaining access to traditional merchant accounts. Banks and payment providers class these businesses as ‘high risk’ and refuse to offer credit card payment services. They claim that online adult services face a greater risk of customer disputes and fraud. American Express, for example, doesn’t allow cardholders to pay for online pornography.

Card payments in the United States are considered to be the least secure method of payment.  Additionally, many adult merchants have recurring payments & subscription billing models that can be impacted when cards are the payment method 

One in five credit cards are reissued every year in the country.  Updating card information when cards are reissued is labor intensive.  And each time a recurring billing customer is contacted for obtain updated card information, you give the customer an unnecessary opportunity to cancel the the service.  

The combination of more cancellations and the inability to obtain updated card information negatively impacts your cash flow from recurring payments.  

Reasons ACH Payments are a Better Solution

Adult merchants discover that payment by ach provides a highly effective alternative to card payments.  Online payment by ACH is a secure option that protects businesses as well as clients.

The ACH network is widely considered to be the most efficient and safest payment system in the world. The network currently handles $41 trillion annually and more than 90% of all electronic transactions in the US are made with payments by ACH.  

With ACH, payments are electronically debited from customers’ bank accounts. Funds are then deposited to your business bank account.  Millions of Americans regularly pay for goods & services with ACH payments.  

ACH is particularly effective for recurring payments & subscription payments. Consumers rarely change bank accounts, whereas cards are frequently changed or reissued.  Once an ACH payment is set up for recurring billing, payments continue steadily, providing a stable source of recurring revenue.  With no need to contact customers & risk unnecessary cancellations.

There is rarely a need to update ACH payment info.  Therefore, cash flow from recurring payments continues uninterupted. With fewer cancellations occurring since customers do not have to be contacted to obtain updated card data. 

A high risk business model can be mitigated by processing higher volumes through a secure online payment gateway with extra protection. Still, you must keep returns & chargebacks below a certain threshold to be able to offer payment by ACH. This reduces the risk for everyone involved on the platform.


The more payment options you offer at checkout, the more sales you make. ACH payments are a familiar & trusted payment option for US buyers.  

ACH payments offer significant benefits over cards for recurring & subscription billing models.  Stabilizing cash flow while reducing unnecessary customer cancellation of services.  

How are you handling payments for your online adult business?  

Contact us today to establish your adult merchant account.


In the Money Lending Business- Here’s What You Need To Know About Online Payments

Money lenders and loan servicing companies operate in trickiest part of the financial industry.  Not everyone can handle the higher risks and volumes associated with a lending business.

Whether you offer car title loans or payday loans, you probably deal with a lot of regulation and inherent risk. To survive in the industry, your operations need be streamlined and completely efficient.

The best place to start is with the infrastructure that allows your customers to pay you. Studies show that traditional forms of payment are on their way out. Plastic is simply more convenient than paying with cash. And paying online, directly from your bank account, is even easier than paying with a card.

Convenience is Key

Loan service companies and loan providers face pressure from both sides – government regulations and customer defaults.

The local authorities and regulators are tightening the rules around lending, which puts pressure on loan companies.

Meanwhile, a study in Texas found that over the course of a year, more than 54% of borrowers defaulted on their payday loans. A similar study in North Dakota found that 46% of borrowers had defaulted on their loans after 48 months. Here are the findings from that study:

  • To deal with this problem, loan companies must innovate and offer convenient solutions to help encourage payments from customers.
  • Moving payments online has the dual benefit of allowing loan companies to get access to bank accounts and making it easier for customers to payback their loans.
  • The most convenient platform for online lenders and loan companies is Automated Clearing House or ACH.

ACH Payments

The reason ACH payments are so popular with loan companies is because it offers unparalleled convenience for both borrowers and lenders. ACH payments platforms allow the lender to automatically draw out the amount owed on a daily, weekly or monthly basis.

Borrowers who sign up for the service can have their dues paid automatically over the period of the loan. A writer for the New York Times found that this system of ACH payments encouraged borrowers to be more disciplined. Borrowers are put under pressure to manage their finance more carefully so that they can have enough money in the account to meet their living expenses and the automatic withdrawals from loan providers.

The infrastructure around ACH payments is designed for high volumes and regular payments. Some providers even offer services to let lenders get paid by checks over the phone, mail or fax, using a virtual terminal.

Convenience isn’t the only reason ach payments are better for loan providers. The payment platform is massive and the network handles close to 90% of all electronic payments in the United States. The ACH network is also considered to be among the safest and most secure electronic funds transfers system in the world.  

A study by SAP found that automated payments through echecks are less prone to errors and fraud, since there is minimal human interference in the whole process.


ACH payments reduce costs, assure that payments are made on time, stablize revenue from recurring payments, and are safe & secure. This makes it the ideal payment solution for lenders and loan companies across the country.

Securing payments and offering convenience to customers will do more than just help your business survive.  It will help your business thrive. 

How are you accepting payments from your borrowers?

Contact us today

Why Business Use ACH Payments

 ACH Payment Processing

The Automatic Clearing house (ACH) system is used as a secure means of crediting and debiting billions of dollars’ worth of payments every year. ACH payment processing is used widely in numerous industries for both business-to-business and business-to-consumer transactions. This article will explain what an ACH payment is, what they do, and how they can enhance your business.

What Is An ACH Payment?

An automatic clearing house or ACH payment is an electronic means of either depositing or withdrawing funds from a bank account. They can be used by businesses and consumers alike, and they make up a huge percentage of electronic transactions. According to statistics from NACHA, 24 billion payments were made via an ACH payment in 2015.  

How They Work

To initiate an ACH debit, the customer must give you permission to deduct money from a saving or checking account.  Authorizations can be obtained in written form, over the phone, or through a website.  

Once authorized, the payment is automatically deducted from the buyer’s bank account. The funds are then electronically credited to your business bank account. An ACH debit can be used for both one-time & recurring payments.

ACH credits are used to electronically deposit funds to bank accounts. 

 The Clearing House and the Federal Reserve act as the clearing houses for ACH payments  The payment process is automated. Once the account is set up, there is minimum effort required by you to send and receive payments.

What Are The Different Types Of ACH Payment?

ACH credits are used to send money to bank accounts.  For example, employers use ACH credits to direct deposit wages.  The government uses ACH credits for tax refunds and social security payments.  Lenders use ACH credits to direct deposit loans.  Businesses use ACH credits to send money to vendors,& refunds to customers.

ACH debits are used by billers to collect payments for utilities, mortgages, insurance premiums & loan repayments.  And millions of US consumers regularly use an ACH echecks to pay for goods & services online and by phone, fax & mail.

Businesses use ACH debits to accept checks online and check by phone, fax and mail orders.  Echecks are the most popular alternative payment method for American shoppers.  More than 30% of internet sites offer electronic checks at checkout.  The more ways customers can buy from you, the more sales you make

ACH debits are particularly effective for recurring payments.  If you offer subscription or membership billing, ACH payments are the way to go. Customers rarely change bank accounts, ensuring that recurring payments continue uninterrupted.  

Compare this to card payments.  

One in every five cards are reissued each year.  The card information has to be updated before a recurring payment is approved. Updating card information is time consuming, expensive, and gives consumers an unnecessary opportunity to cancel a recurring payment.  

Benefits for Businesses

There are major benefits to businesses who choose to accept ACH payments. These include:

  • quicker payments
  • reduced labor time
  • fewer mistakes
  • fewer resources required
  • giving consumers an alternative means of paying for goods
  • lowering processing fees, which is especially beneficial for recurring payments
  • increased profits through lower fees
  • better cash flow

Benefits For Consumers

There’s numerous benefits for consumers as well. These include:

  • a reduced risk of fraud
  • a greater sense of security for consumers
  • less need to worry about payments getting mislaid
  • providing a convenient alternative for customers who prefer not to make check or credit card payments

How to Accept ACH Payments

If you want your business to benefit from the many advantages of accepting an ACH payment, you’ll need to establish an account with a ACH merchant account provider.  

It’s easier to establish an ACH merchant account than card processing.  And rates are often significantly lower for ACH than card processing.

To apply for an account, you submit an application along with information about your business.  Once approved, you can accept checks online with a simple API integration.  And you can accept check by phone, mail or fax orders using a virtual terminal.  


Electronic payment methods continue to grow in popularity, and they offer numerous benefits to businesses and consumers alike. You benefit from improved cash flow, quicker payments and lower transaction fees.  Your customers get a convenient, secure way to make a one-time or recurring payments.  

How is your company handling electronic payments?

Contact today.



How PCI Compliance Relates to ACH Payments

What is PCI Compliance?

The Payment Card Industry Data Security Standard, commonly known as PCI DSS, has long been the leading authority in terms of security for the credit card processing industry. Its reliability makes PCI enormously valuable when it comes to protecting not just card information, but any type of sensitive data, such as ACH payment processing credentials.

The misconception that only large companies that have huge processing capabilities need to be concerned with security will hopefully become less widespread. Today’s context makes it necessary for all merchants, irrespective of size, to protect sensitive information, and PCI DSS provides the necessary framework to do so. 

PCI is required for card payments.  Yet, it also adds protection for ACH payment processing.  

How PCI Helps Prevent ACH Processing Fraud

PCI compliance was introduced in the payment industry to stem the tide of fraud losses, but unfortunately, not all entities respect it as they should. A recent study released by the American Bankers Association (ABA) suggests that, in spite of the best efforts of banks to prevent fraud, their task is rendered difficult by retail data breaches.

These breaches, which have become the norm in recent years, are made possible by insufficient security protection.

The good news is that ACH payment processing, online banking, and wire transactions taken collectively make up just 2% of the losses reported by the ABA. Fraud losses, however, continue to increase, mainly because not all parties involved in the payment ecosystem are equally concerned with security and prevention.

The consistent implementation of PCI standards would make it considerably difficult for fraudsters to make a breakthrough to your ACH payment processing.

Tips to Protect Your ACH Payment Processing Account

Each business that uses ACH payment processing needs to do its share in this collective effort to prevent fraud. Even though ACH payments accounts register less fraud attacks, the risk is far from non-existent.

Since ACH payments are often low risk, ACH transaction processing is largely automated.  Therefore, detection of fraud might not occur in time to stop it. Given the fact that business accounts have just 3 days to reverse an ACH payment processing fraudulent transaction, it would be unwise to disregard this risk.

Some components of the PCI standard considerably reduce the prospect of suffering ACH payment fraud.  These include:

  • Maintaining a firewall
  • Using encryption when transferring sensitive data
  • Making sure that the virus protection is up to date
  • Putting into place a security policy that each employee needs to follow

How Employees Contribute to Fraud

Fraudsters can get access to ACH payment processing  information by targeting employees with tried-and-tested techniques,

For example fraudsters install  malicious software as email attachments.   When the employee clicks on the attachment, the harmful software is installed.  Some newer, more sophisticated, and quite effective techniques involve social engineering and impersonation.

These threats can be addressed by providing training to employees that handle ACH payment processing information on how cybercriminals perpetrate their acts.  

Also, two-factor authentication is an increasingly used method of securing payment information.

Regardless of what security measures a merchant decides to adopt, they need to be implemented and followed as consistently as possible, until they become a part of business as usual.


Following PCI recommendations for safe payment processing is a wise strategy.  Protect your business by following PCI standards for secure processing. 

Interested in finding out more? Contact