The 2018 AFP Payments Fraud Survey revealed that wire fraud contributed to 48 percent of total fraudulent transactions hitting organizations. This means wire transfers make up almost half of the fraudulent transactions experienced. With financial institutions processing thousands of commercial transactions each day, checks and wire transfers are the top targets for fraudsters.
Topics: Fraud Prevention
The volume of transfers via the ACH Network is at an all-time high, proving that consumers are increasingly using ACH payments for more regular, predictable transactions. NACHA credits the massive growth to both an increase in bill payments and account-to-account transfers, which grew 24 percent, as well as a rise in business-to-business payments, which rose 13 percent.
This increase among B2B payments underscores the demand for ACH among business customers; therefore, financial institutions should consider offering a service that allows businesses to easily exchange payments with other businesses, as they often initiate regular payments between one another.
Understanding the Various Payments Systems Series: Blog 4
In the wake of new and expanded payments methods like same-day ACH and Real-Time Payments (RTP), another option that continues to make headlines is the use of third-party payment apps like Venmo and Zelle.
In our previous two blogs, we discussed the unique differences and use cases for same-day ACH and RTP, but financial institutions and their account holders must also have a clear picture of third-party apps and their use cases. Only then will they be able to leverage the different methods to their full potential and adequately support them from a strategic standpoint.
The Rise of Third-Party Payment Apps
Third-party payment apps have been growing in popularity, and are a sound option for peer-to-peer (P2P) transactions. For P2P payments, this method is extremely convenient because it uses an identifier, such as a phone number or email address, so that consumers do not have to disclose their bank account information.
Understanding the Various Payments Systems Series: Blog 3
Today, there are more ways than ever for consumers and businesses to transact payments quickly, specifically, with the Venmo, Zelle, same-day ACH and most recently, The Clearing House’s real-time payments system. Although these different methods may seem the same or are perceived as “instant” payment methods, they are not.
With so many options, it can be very confusing, which is why we have broken down what each is, their specific use cases, and which type is better.
Understanding the Various Payments Systems Series: Blog 2
Today, organizations and consumers all crave fast, immediate payments. In response, services like Zelle, Venmo and same-day ACH, among others, have emerged. With so many methods, it can quickly become confusing.
Adding to the confusion is the perception that funds are immediately transferred. For instance, with mobile wallets like AndroidPay or ApplePay and services like Venmo, a user will see value transferred instantly but those funds are not settled immediately.
It is imperative, then, that financial institutions and their account holders understand the key differences between each method, and understand how each impacts payment delivery.
Real-Time Payments vs. Same-Day ACH
Previously, we explored same-day ACH – one payment method that is continuing to grow in popularity. Its ease and flexibility makes it well suited for time-sensitive matters such as payroll or business-to-business (B2B) transactions.