ACH Payment vs Wire Transfer: What's the Difference?

Interesting write-up yesterday by #KevinWoodward @ #digitaltransactions re new #Chase bank payment options for #SMB clients. Is it just me or is this a super-pricey payment option? An excerpt: "The ACH and real-time payments service are pay-as-you-go, with no monthly fee, says Jameson Troutman, Chase head of product for small business, via email. Standard ACH fees are $2.50 for each payment up to 10 per month and 15 cents per payment above 10. Same-day ACH and real-time payments are priced at 1% of the transaction value up to a maximum of $25 per transaction." Full story here: https://lnkd.in/eJWBcsVW

Same Day ACH reached new heights of payment volume and value as the modern ACH Network posted significant volume and value increases in the second quarter of 2024, Nacha reported. There were 8.3 billion ACH payments in the second quarter, an increase of 6.3% over the same time period in 2023. The dollar value of these ACH payments totaled $21.6 trillion, a 7% increase. Same Day ACH exceeded 100 million payments in a month for the first time in April 2024, with 107.8 million. April also had the highest monthly value ever of Same Day ACH payments ($293 billion) and the highest average daily volume (4.9 million). In the second quarter of this year there were a total of 292.3 million Same Day ACH payments, up 46.6% from a year earlier. Same Day ACH payment values rose 31.1% to $803.3 billion for the second quarter. #ACH #SameDayACH #FedACH #NACHA #ACHNetwork #CHIPS #RTP #FedNow #Payments #InstantPayments #RealTimePayments #Zelle #ChinnapaReddy #Banking #Innovation #Fintech #BillPay #B2B #FasterPayments #B2BPayments #SWIFT #NEFT #RTGS #FedWire #LYNX #CHAPS

3 years ago I wrote about some common problems with bank partners: https://lnkd.in/gwBUyihm It was about issues that frequently arise between fintechs and their bank partners, particularly in card issuing + deposits, but might be generally applicable to other programs (like lending, bnpl etc) particularly as all fintechs basically touch identity information in some way, and many problems arise from identity data being misused in some way. I called out 3 types of problems that you might encounter running a program: Regulatory Problems, Network Problems and Operational Problems. In hindsight the thing I was most wrong about was this statement about Regulatory Problems: “This is a low probability, high impact way things could go wrong” If you’ve been following fintech over the last 18 months it’s clear that regulatory problems are much higher probability as a meaningful number of the banks that underwrite fintech programs in the United States have since been hit with a number of consent orders. More below the fold: https://lnkd.in/gq9GC7Zv

In today's digital world, it's essential to choose the right payment method for your needs. Whether you're a business owner or an individual, understanding the different payment systems available can help you make informed decisions. Two of the most commonly used payment methods are Real-Time Payments (RTP) and Automated Clearing House (ACH) transfers. While they both serve the same purpose of moving money from one place to another, they function quite differently. This article will explain what RTP and ACH are, how they work, and how they differ from each other.

🔍💳 Ever wondered what lies behind the numbers on your card? Dive into our latest article all about Bank Identification Numbers (BINs)! 📊✨ Tracking key business metrics at the BIN level and monitoring performance over time can be a key advantage for merchants to empower their payments knowledge! Click below to read the full article now! #PaymentProcessing #Fintech #PaymentOptimization #BillingPlatform #SubscriptionManagement #RecurringBillingSoftware #CustomerChurn #Subscription #SubscriptionNews #Ecommerce #SubscriptionCommerce #Payments #BankIdentificationNumbers #BIN #BINs

Nacha has issued an Operations Bulletin on Open Banking and ACH Payments, and the impact of the Consumer Financial Protection Bureau's rule on Personal Financial Data Rights. Key takeaways are: 1. A consumer’s authorization to share data, including the “information to initiate payment to or from a Regulation E account,” is separate and distinct from a consumer’s authorization to initiate an ACH payment to credit or debit their account; 2. Covered Receiving Depository Financial Institutions must comply with the CFPB's requirement to make routing and account numbers available through consumer and developer interfaces at no cost; and, 3. The Nacha Operating Rules apply, and will continue to apply, to all ACH payments, including those for which the routing and account numbers are obtained through open banking methods, just as if the Receiver had provided that information directly to the payment Originator. #ACH #OpenBanking #CFPB #PaybyBank https://lnkd.in/eBXiQNWE

Real-Time Payments vs ACH: A Comprehensive Comparison for Modern Payments #paymentsolution #paymentmodernization #ach #RealTimePayments #paymenttechnology #Techzert

"The payments processor is only the second company to win the special bank charter since Georgia made it available." As card networks mull over the proposition of allowing Fiserv to plug in to the networks, the OCC has requested commentary about new regulatory controls and thus new examinations for compliance by banks with fintech contracts. Risk management is an ever evolving frontier, as long as free enterprise wonders the economic landscape in search of the next profit gusher. In oil exploration there is a term used for people or companies who drill wells in territories where there is no known oil fields. It is this perception of bankers who engage with or acquire fintechs and there is no known expertise by bank management of operating software businesses. Therefore, federal regulators become concern with the unknown risk to the bank and by federal deposit insurance guarantee the unknown risk to the federal treasury. But now one state has open a door to significant unknown. Allowing a nonbank to operate in some partial way as a bank. Does the state have the oversight capacity to examine national nonbanks for risk and regulation compliance? It seems there are doubters that the state can regulate the businesses it grants with banking powers. #bankregulation #riskmanagement #fintechs

In today's fast-evolving payments landscape, it's crucial for banks to navigate the complexities of managing multiple payment platforms efficiently. Our latest read in BankBeat outlines the pitfalls and emphasizes the importance of a unified approach to payment solutions. https://hubs.ly/Q02zg8Jy0 #bankingtech #payments #fintech

Great insights