Are ACH Payments Safe? What You Need To Know

If you’re new to payment systems as a small business owner, you may be unsure of the term “ACH payments.” However, you’ve almost certainly used this type of payment even if you didn’t realize it.

Depending on your business needs, ACH payments could be a good choice for you, but you may wonder, “Are ACH payments safe?” Before making the choice, make sure you understand this option and how to utilize it safely.

Are ACH Payments Safe?

Before discussing the safety of the process, a short overview may be helpful. ACH stands for “automated clearing house.” ACH payments are generally a transfer of money between two banks. A company called Nacha (National Automated Clearing House Association) oversees the ACH Network, which is responsible for processing these payments. Examples of ACH payments include paying a bill to a landlord or utility provider and receiving a paycheck from an employer via direct deposit.

ACH Security

According to a recent Federal Reserve study, ACH fraud rates are minimal, especially compared to credit card fraud. In general, ACH fraud value is also much less than credit card fraud value. If your question is “Are ACH payments safe?” this data suggests that ACH is a relatively safe way to conduct business.

With that said, there is always some level of risk whenever an exchange of funds occurs. Consequently, some precautions should be taken when opting for ACH, as with any other payment method.

Tips for Using ACH Safely

There are many ways you can ensure the safety of your ACH transactions, but start by taking note of these basics.

Be Aware of Potential Threats

New types of fraud are always popping up. Make sure you familiarize yourself with the different types of fraud, whether via new tech or old-fashioned scams.

Protect Personal Information

This tip may seem like a no-brainer, but sometimes it’s not always at the front of the mind with so many other, seemingly more urgent items to focus on. This is one of the simplest ways to prevent fraud, both online and off.

Ensure Technology and Software Are Up To Date

A customer or client may ask, “Are ACH payments safe?” You can answer this question affirmatively and confidently by making cybersecurity one of your top priorities. Technology is always developing new ways to protect personal data, but cybercriminals are responding by coming up with new methods of circumventing those advances.

Educate Your Employees

By ensuring your employees have a working knowledge of cyber security, you’re being proactive about your clients’ privacy. Cyber security awareness topics range from knowing how to spot scams to creating an effective password. Various resources exist to assist you in this area.

Are ACH Payments Safe? Now You Know!

The fact is that there are pros and cons to every process or service, but there are also precautions you can take to minimize the risks. Do you have questions beyond “Are ACH payments safe?” Turn to PaymentClub for guidance on accepting and receiving payments as a business, from payment systems to point-of-sale systems and more. Contact us today or browse our website for helpful tips!

Share this:

Leave a Reply