Getting Clear on Automated Clearing House — What ACH Can Do For You
The Evolution of ACH
A Journey from Physical Checks to Electronic Transfers
Recently, Automated Clearing House (ACH) has captured the spotlight in the financial news, especially highlighted by MarketWatch for its evolving role in the modern payment system that demands instant transactions. As an early pioneer among inter-bank electronic networks, ACH dates back to the dawn of computer technology, before the internet’s widespread adoption. AVPS is excited to enhance this established system’s agility, providing merchants with broader payment options for their customers, such as the ability to accept payments online.
ACH: The Backbone of Electronic Fund Transfers
As MarketWatch describes it, “Automated Clearing House (ACH), the national electronic transfer system created in the 1970s to give banks a secure way to transfer funds that was more efficient than the old system of physically mailing checks from one bank to another. ACH is what nearly all U.S. banks use to process direct deposit payments, person-to-person transfers, bill payments, and other transfers.”
The Push Towards Enhanced Efficiency
Federal Reserve’s Vision for a Modern Payment System
“The Federal Reserve last month released a consultation paper calling for a more efficient payment system,” the article goes on to note — something we reported on here. And that paper from the Fed “recommended that banks work together to develop a real-time payment system… Possible improvements included creating a new system for real-time wire transfers, enhancing debit card networks, speeding up the ACH system or creating an entirely new payment system.”
AVPS: Making ACH Work for You
Fast, Reliable, and Secure ACH Processing
As we actively consider and gradually implement these changes, we at AVPS are delighted to share that we’ve optimized ACH to benefit your transactions. Notably, our system actively submits transaction details to the Federal Reserve Bank, ensuring the swiftest processing times possible. Moreover, we securely store all transactions in a database, guaranteeing they will feature prominently on your monthly statement.
Bridging the Gap Between Traditional and Modern Payments
Although we cannot accelerate the entire banking system instantaneously for you, we can efficiently process ACH payments within 2-5 business days. Furthermore, your customers have the convenience of issuing checks to you, even electronically, enabling us to facilitate your payment promptly.
Embracing the Future of Payments
And of course, we’ll do our part to keep bringing all your payment options — the the system behind it — straight into this 21st century of ours.
Get in Touch for Personalized Payment Solutions
For more on ACH, contact your AVPS rep today.
