|July 22nd, 2022|
Same Day ACH has gained more improvements in late 2018 and is heavily utilized by merchants and integration partners. This blog further introduces one to benefits and provides a few real-life examples of same-day bank transfers in action.
A Short Introduction To Same Day ACH
Before we get into the details of Same Day ACH, it can really be helpful to understand the main components who are involved in it. Firstly, NACHA works like the regulatory governing body in the ACH network. Secondly, there are ODFIs (Originating Depository Financial Institutions) and RDFIs (Receiving Depository Financial Institutions). An ODFI enacts the role of the financial institution from which the ACH transaction starts or originates, whereas an RDFI is an institution that receives the ACH transaction.
Moreover, there are third-party processors such as Actum that make it easy for the payment processor to connect to the ACH Network and provide ACH transactions. We also provide a perfect few API endpoints that will help a merchant to connect from their platform, and also provide an intuitive dashboard.
One can use this technology to streamline operations and work more efficiently to manage your cash flow. Moreover, the ACH processing services allow you to streamline the payment processing and help to improvise the situation.
Benefits And Use Cases
When you work with Actum, you must submit the debit transactions which shall be processed on the next day.
Here are a few industries where faster transmission times can really be useful-
Marketplace & Gaming Platforms- When consumers sell a service, they might want their payouts delivered quickly. Moreover, same-day ACH can make your platform stand out from the crowd.
Loan, Real Estate, or Utilities Bill Payments-
If customers don’t have an autopay, they might forget to make their payment before the due date. Same Day ACH can allow last-minute bill payments to settle faster with earlier transmission times.
Are ACH payments safe?
ACH payments are generally designed to protect your data and prevent fraud. However, unlike checks or cash, they remain documented and trackable.
Payments made through the ACH network also get encrypted to minimize the risk of the price or when data gets forged, lost, or stolen. Moreover, the NACH also enforces strict security measures and protocols necessary for member institutions to simplify ACH transactions which remain safe and reliable tools for senders and recipients of the payments.
ACH payments remain reliable and safe since they come with smaller cash reserves and their lost funds remain a real threat to the financial health of SMBs. Larger enterprises can absorb losses due to fraud, theft, or error, which is why every penny counts.
This is why choosing ACH payments works for small businesses as they get encrypted and remain less prone to malicious and incidental intervention other than wires, checks, and cash transactions.