Same Day ACH No Silver Bullet for Business Payments
ACH is just one potential solution to the ultimate goal of obtaining faster and more secure payments. Last month, the Federal Reserve Bank gave its approval on a proposal for same-day ACH that the industry group Nacha proposed in May. The new rules scheduled to be implemented in September 2016 are a significant advancement, but as MineralTree founder and CEO BC Krishna points out, we still have a long way to go in order for same day payments to be ubiquitous and safe for businesses.
In a recently published American Banker article – and an unabridged version self-published on LinkedIn – BC Krishna explores the push towards faster payments in the U.S. and the challenges we have to overcome in order to make them a reality for businesses. He makes a case for bringing together stewards of all the different payment rails to ensure the infrastructure we need for the future is in place, writing:
ACH is just one potential solution to the ultimate goal of obtaining faster and more secure payments. Other payment rails such as debit, credit, electronic funds transfer, and virtual cards are in a good position to solve these challenges as well. While some of these options are currently focused on consumers, they have the infrastructure to potentially improve business payments too. The only thing holding them back are rules that the industry associations and governing bodies managing them have put in place. And rules can be changed — just as Nacha is beginning to do with ACH.
BC is passionate about helping businesses operate more efficiently by improving the options they have for making payments. In addition to founding MineralTree, he is a member of the Federal Reserve Bank’s Secure Payments Task Force and Faster Payments Task Force, and is working with the Remittance Coalition to lead the creation of a B-to-B payments directory.
For BC’s thoughts around challenges related to the new ACH rules and how they can be improved, read the complete version of his article, “Same Day ACH No Silver Bullet for Business Payments” at: https://www.linkedin.com/pulse/same-day-ach-silver-bullet-business-payments-bc-krishna. The shorter version originally published in American Banker can viewed online here: http://www.americanbanker.com/bankthink/same-day-ach-no-silver-bullet-for-business-payments-1076970-1.html.
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