If you haven’t included ACH (Automated Clearing House) as a payment option for your application software, it’s the perfect time to take advantage of its wide range of benefits. ACH is an electronic payment delivery system that functions throughout the country, and is used to process both credit and debit transfers for all establishments that support it.
ACH Stands The Test Of Time
Due to the extremely fast pace of today’s technology, more and more payment options are being regularly introduced to the public, but just because it’s “new” doesn’t mean it should be adopted. ACH is a tried, tested and true payment option that has been operating since the early 70’s. It was primarily developed as a response to the increasing use of paper checks and the very valid concern of the existing systems’ ability to support its popularity. Thanks to the continued support of thousands of professionals in the industry, including members of the Electronic Payment Association and members of the Bankers Association, ACH is still going very strong as an efficient and secure alternative to paper checks.
ACH Works For Workflows
Moving an estimated $43 trillion annually, the ACH network makes a critical impact on the country’s commerce. The most common transactions involve recurring bill payments, purchase of goods and services, B2B (business to business) transfers and distribution of direct deposits. ACH also boasts a wealth of advantages to workflows, such as:
- Needing significantly less resources compared to processing paper check transactions
- Much more reliable than traditional checks
- More often than not, less expensive than having to process credit card transactions
- Helps to streamline business finance management
- Has strict regulations, and all those who use it need to follow the rules
National Automated Clearinghouse Association Rules
NACHA (National Automated Clearinghouse Association) was formed more than 40 years ago when several U.S. Payments Associations joined together. Its main function is to create and maintain the rules of the ACH network. Along with the specific users and financial institution members, contributions to the ongoing development of rules, regulations and best practices are provided by government regulators, Regional Payments Associations and the Federal Reserve. As of today, NACHA still administers and facilitates the operating rules of the private sector for ACH transactions. Here are some of the extensive security rules that participants of the network need to adhere to:
- Implementing processes that validate bank routing numbers during the time of origination
- Implementing access controls that protect sensitive data
- Encrypting of sensitive data when being transmitted over an unsecured network
- Using processes that correctly identify customer identity when processing transactions online or over the phone, at the time of origination.
For several years, ReliaFund Electronic Payment Services has worked hand-in-hand with businesses and independent software vendors to help them safely manage and accept ACH transactions. To learn more about how we can help you make the most of ACH, connect with us for a free analysis.