For many ecommerce businesses, Automated Clearing House (ACH) payments debited directly from bank accounts provide a lower-cost, more accessible alternative to credit cards. And while cards expire and go missing, account and routing numbers used for ACH payments are more permanent, leaving less room for interruption and error. Despite the benefits for merchants, customer preference and convenience have helped cards solidify their position as the recent default in ecommerce payments.
„To help businesses take advantage of the ACH opportunity, Plaid partnered with Square so merchants in the US can easily process ACH debits without needing to hold sensitive bank information,” according to the press release.
Now merchants can accept ACH payments through Square Invoices and developers can enable ACH payments through Square Web Payments SDK, without worrying about bank authentication or any managed payment complexities.
„Through the partnership, Square uses a tokenized check system that uses Plaid to allow customers to securely connect their bank accounts for bank payments. This verification option allows customers to quickly enter their bank login credentials to connect an account to enable payments,” the company explains.
For businesses that collect payments on high-value orders, the power of Square and Plaid means more certain collections. In addition, Square offers fee-free refunds on ACH payments they process to make ACH acceptance even easier.
“By offering ACH payments, we can help businesses process large transactions online at a low cost without worrying about bank authentication, compliance, or any managed payment complexities. We’re excited to offer ACH as one of many ways that businesses get paid fast and securely with Square,” said Dennis Jarosch, Head of Payment Platform at Square.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below: