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Same Day ACH: A Boon For Business
Automated Clearing House (ACH) payments continued to gain steam among business users last year and with the introduction of Same Day ACH this year, that trend is sure to continue.
Statistics released last week by NACHA showed strong growth in B2B transaction categories in 2015. CTX (Corporate Trade Exchange) and CCD (Corporate Credit and Debit) transactions increased 7.2 percent and 8.2 percent, respectively. With features such as the ability to include addenda records with each transfer, both of these transaction formats are designed specifically for business use.
Companies clearly see the value in moving away from paper checks and adopting electronic payment methods that better meet their needs. And with plans to shrink settlement windows and roll out Same Day ACH this fall, NACHA is taking important steps to make the ACH network even better suited for business.
There are a number of benefits to moving funds more quickly through Same Day ACH that will make it an attractive option for businesses to use more often. For example, improving cash flow and lowering risk are two of the most significant advantages that Same Day ACH will provide. While the current three-day settlement window provided by ACH is generally much quicker than sending paper checks, having transactions clear within 24 hours will be a dramatic improvement. It will give organizations the ability to more precisely keep the books and manage cash. In addition, shorter settlement windows with funds moving more quickly from one party to another mean lower risks for everyone involved.
The other good news that NACHA revealed earlier this month is that banks are eager to support Same Day ACH. A survey conducted by NACHA found that 95 percent of top financial institutions plan to offer same-day B2B payments.
Let’s not wish the summer away, but there’s definitely a lot for finance professionals to look forward to in September!
If you’d like more information about how MineralTree can help improve the entire invoice-to-pay process, from streamlining approvals to executing payments through a number of channels including ACH, visit Invoice-to-Pay page.
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