January 14, 2010
Linda Coven, Silicon Valley Bank
The use of the Automated Clearing House (ACH) payments is an excellent model for effective, efficient and low cost disbursements and collections. ACH adoption continues to grow as an increasing number of companies find more ways to incorporate the use of these payments into their cash flows.
The overwhelming use remains direct deposit of payroll, although with the growing acceptance of bill pay services and the convergence of check with ACH, companies are finding that they are the recipients of ACH collections in greater numbers than ever before. ACH serves as an effective disbursement tool for employee reimbursements, vendor payments, tax payments and child support.
On the collection side, automatic debit programs with customers for payment of subscriptions, dues and memberships have long been shown to be efficient and highly cost-effective.Download the article
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