More and more people are paying their bills through ACH, which isn’t surprising given the number of advantages it has over more traditional forms of payment, like credit cards and checks. There were over 26.8 billion payments made through ACH in 2020 because it’s one of the fastest and safest electronic payment methods. It’s why a majority of peer-to-peer digital payments on platforms like Venmo use ACH. Finli uses the same underlying technology as Venmo to safely and securely process ACH payments.
Unlike paper checks, ACH is an electronic fund transfer that doesn’t leave behind paper records that might reveal sensitive banking information. Paper checks pose a serious risk to customers’ data privacy since customers’ banking information is openly visible to intermediaries handling those checks. ACH, on the other hand, removes the intermediaries, thus reducing the risk of fraud and tampering.
ACH is much less costly for businesses to use than credit card networks and, therefore, a much better option to use to support businesses in your community since more of the funds reach them. While it costs businesses less to use ACH, it doesn’t mean that consumers are making up the difference—ACH payments also have many of the same consumer protections that credit cards offer.