The Importance Of Same-Day ACH

Jan 31, 2017

According to new data from the National Automated Clearinghouse Association (NACHA), the electronic payments association that manages the development, administration, and governance of the ACH Network, same-day ACH has successfully started after it was initially implemented in September 2016. In October 2016, ACH counted for 3.8 million transactions making up 55 billion.

ACH is the US faster payments initiative aimed at accelerating settlement time for specific bank-based transactions. Special attention should be given to same-day ACH for B2B (business-to-business) payments. It is worth mentioning that B2B counted for the 2nd most popular use for ACH in October 2106. B2B payments resulted in 36% of same-day ACH volume in October 2016.

If you’re looking for a low-cost and reliable merchant account, turn to emerchantbroker.com, the top high risk payment processor in the US. EMB has an A+ rating with the Better Business Bureau (BBB) and is rated A by Card Payment Options. EMB is one of Inc. 500’s Fastest Growing Companies of 2016. With EMB, you can enjoy exceptional chargeback protection and prevention programs for your online business.

The Fed, NACHA, and private institutions are on the lookout for ways to make the US payments system more advanced so to provide more convenience for users and not to stay behind the trade partners in the US. The Task Force formed by the Fed aimed at resolving potential solutions. NACHA and private institutions were trying to make banks meet a set of 3 same-day settlement deadlines through late 2016 into 2017.

The report by Jaime Toplin, research associate for BI Intelligence, Business Insider’s premium research service, studies the reasons why the US should have a Faster Payments system, how it should be implemented, what areas it would influence, and which parties would take advantage of the mentioned system and which ones would not.

Based on the research, the number of transactions impacted by faster payments will grow with years. The mentioned system will be beneficial for the main areas ─ P2P, B2B, C2B, and B2C payments, which made up 12% of US payments volume in 2014. These areas will grow with rapid advances.

What is more, such platform is expected to enhance third-party providers such as P2P app vendors or mobile bill pay firms. The latter providers will be given an opportunity to boost efficiency, volume, and engagement. Transactions costs associated with these providers won’t increase significantly.

 

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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