An eCheck is a payment method that businesses use to charge an individual or another business. It utilizes the Automated Clearing House (ACH) system to move the money between bank accounts. eChecks support a diverse set of use cases, from rent and utilities to medical payments and business invoices.
When an ACH return occurs, the payment is reversed. This means that if you had paid someone, the money will come back to your account. Or if you had charged someone, you will lose the money you thought you received. But how does that reversal happen?
Lockboxes are a great solution for businesses who don't want to deal with the hassle of paper checks.
So it’s no surprise that everyone from major financial institutions to individuals working in accounting to consumers would have questions about a brand new payment method: Real-Time Payments.
You may have heard of Real Time Payments (RTP) and wondered what that is. We thought it would be helpful to create a post that could serve as an overview of RTP, a new payment method that is coming to the US in the next couple of years.
In the United States, moving money is big business. The ACH Network moves $51 trillion dollars in 23 billion electronic financial transactions per year. That’s almost 70 payments per person.