Fintech firm Plaid helps customers to authorize their bank account to make a payment quickly. In order to help businesses benefit from ACH payments, the company has partnered with Square.
ACH payments debited directly from bank accounts provide a lower-cost, more accessible alternative to credit cards for many businesses. Accounts and routing numbers used for ACH are more permanent than cards which expire or can go missing. Even despite the benefit for merchants, cards have solidified their position as default in e-commerce.
Plaid and Square’s partnership will allow merchants in the US to easily process ACH debits without holding sensitive bank information. Businesses can accept ACH payments through Square Invoices and developers can enable ACH payments through Square Web Payments SDK, without being concerned with bank authentication or other managed payment complexities.
Square’s tokenized check system uses Plaid to allow customers to securely connect their bank accounts for bank payments. This verification option enables customers to quickly enter their bank login credentials to connect an account to enable payments.
Additionally, Square offers no fee refunds on ACH payments they process to make ACH acceptance even easier.
Dennis Jarosch, Head of Payment Platform at Square commented:
Dennis Jarosch Source: LinkedIn
Payment flexibility, security, and transparency are core to Square’s Payment Platform. 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.
The landscape of payments is changing and businesses willing to make the switch to account-based payments can take advantage from a customer base that is accustomed to new ways of paying.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
