ACH payments are not a new concept, nor are they the sexiest trend in the rapidly-evolving FinTech ecosystem. Electronic checks have received a bad rap for not being innovative enough, but advancements and investments in the ACH payment network has taken this technology back to the forefront of many B2B payments discussions.
Whether it be for overhauling outdated legacy payment infrastructure, managing and settling payments faster, or securely sending payments across the rails better, there is a lot of potential packed into an ACH payment. While credit cards rule the B2C world, there are plenty of businesses that still rely on paper checks. In the year 2017, with e-invoicing and ACH options readily available, there is zero reason to stick with the paper method.
Similar to a check, an ACH payment is processed through an account, but done through in an electronic method — and through batches at multiple intervals during the day. Unlike the high fees associated with credit cards, ACH payments often reduce costs because of the batch processing method. It also eliminates the costly expensive of sending physical checks, which bring along plenty of security issues and delays to the payment process.
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