From direct deposit payroll to B2B transactions, Automated Clearing House (ACH) payments have become the preferred standard for companies and employees around the globe. Throughout its 40-year history, users have continued to embrace ACH payments for their convenience, speed and reliability.
Every few months, another article comes out celebrating the "death" of the paper check. Paper check writing is definitely on the decline. In 2000, Americans wrote more than 37 billion paper checks. And just 10 years later, the number fell to 18.3 billion.
But 18.3 billion of anything is hardly a mortal wound. And experts predict that the paper check writing tradition won't completely die out until 2026.
Automated Clearing House (ACH) is a government-regulated electronic network through which financial institutions can transmit funds back and forth. The process is similar to credit cards, except that senders and receivers use bank routing codes instead of traditional 16-digit credit card numbers.
Enabling ACH payments offers important advantages to businesses and customers alike:
In an earlier post, we covered some of the primary benefits that businesses receive by accepting virtual payments. Consumers benefit as well, especially those 10 percent who don't carry cash at all and the nearly 80 percent who carry less than $50 at any given moment.