William Hockey, Co-founder & CTO of Plaid
Répondu il y a 39w
There’s been a surge of interest in ACH as of late, and a ton of existing content out there. I’ll throw out a shameless plug for a bunch of articles we’ve written about ACH on Fin I’ll cover some of the random facts that I think are most interesting.
- Échelle - More than 90 percent of the value of all U.S. electronic payments go through ACH and is the fastest-growing form of payment in the United States. Last year alone, more than $43 trillion in utility payments, direct deposits, P2P and other payments of every kind in between, flowed through the ACH network. However, most consumers don’t even realize they’re leveraging the network—or know what it is. The ACH, or Automated Clearing House, network is the primary way money moves electronically.
- Prix - It’s hard to beat free, and ACH is practically that. If you pick the right processor you can send money for mere cents. Especially compared to credit cards which usually are going to run between 2-3% and wires that are usually going to be in the tens of dollars. There are some sacrifices you’ll make, but given the exponential growth in it as a payment mechanism, they’re clearly worth it in many cases.
- Developer ease - ACH is commonly viewed as this archaic system where you have to FTP fixed flat files around and can rack up crazy NSF and overdraft fees if the account doesn’t have sufficient funds. That definitely may have been true in the past, but there are a ton of great developer friendly processors out there that offer basic APIs that abstract the transmission complexity. Paired with something like Plaid, you can get real time data on account balances, never have to hold sensitive data and can eliminate a lot of the risk and complexity.
- La vitesse - People sometimes think that ACH as a system takes days or weeks to complete. While its not instantaneous like credit or wires it can usually complete in under 24 hours.
- Historically most of the latency was due to the consumer onboarding and establishing trust. In the old days companies would make their customers do trial or micro deposits (send two small transactions to your account and making the consumer verify the amounts) which could take days for the consumer to finish. On top of that they had to verify the identity of the individual which can take a while. Know with systems like Plaid (shameless plug I know…) it can happen in seconds.
- Secondly, most companies tend to hold funds from the consumer for a couple days to make sure there was no issue from the consumer’s account, even though the transaction completed. If you’re willing to take on a bit more risk and clear the funds before you get final confirmation that there was no post-process error you can cut days off the traditional clearing time.