How can AML Software help you?

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|phone” _builder_version=”4.4.4″ background_enable_color=”off” custom_padding=”||||false|false” custom_padding_tablet=”30px||30px||false|false” custom_padding_phone=”0px||30px||false|false” da_disable_devices=”off|off|off” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.4.4″ width=”90%” max_width_tablet=”” max_width_phone=”” max_width_last_edited=”on|phone”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ text_font_size=”12px” header_3_font=”Lato||||||||” header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]By Mariana Almeida Marques
[/et_pb_text][et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”18px” inline_fonts=”Lato”]The rise in money laundering crimes all over the world forces companies to pay special attention to this issue. Luckily, not only fraudsters have become smarter, but technology has too. There is a vast array of technologies that companies can use to prevent money laundering crimes and fraudulent activities. In this article, we will explore the types of AML software available in the market, their relevance to your company and the features to look for in AML solutions.

Why do I need an AML software?

Between 2 to 5% of the global GDP is laundered each year. That accounts for between €715 billion and 1.87 trillion each year, according to a report from the UNODC (United Nations Office on Drugs and Crime). The statistics are scary, but quite explanatory when it comes to the importance of preventing money laundering crimes.

AML software is not an optional tool anymore- it is required by law and fundamental in keeping your customers and your business safe. No matter where your company is based, you must have a strong AML policy and comply with national and international AML regulations. In order to do this effectively, it is important to choose the right AML software.

Types of AML solutions

Money Laundering is a complex area to navigate. In order to prevent money laundering crimes, banks and are financial institutions often focus on these four areas:

Customer identity management

This type of AML software is used to verify customers’ identity, as part of the Know Your Customer protocols. The Know Your Customer, or KYC, is a widely used term in the financial services industry.  It reiterates the importance of ensuring that all customers are legitimate before they open an account or start a business relationship with any financial company. This software would check, for instance, customers’ address history, credit history and criminal convictions. This information enables companies to know their customers better and prevent fraudulent activities.
[/et_pb_text]Customer identity processes help to prevent money laundering crimes.[et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”18px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

Transaction monitoring

There is now software that monitors all transactions and picks up on suspicious details to detect fraud. Machine learning technologies can also detect fraud patterns based on previous customer transactions to make more accurate predictions and more easily spot a fraudulent transaction. This software monitors both the customer’s transaction history and their current transactions, including all deposits, withdrawals and transfers. Companies may also employ a professional to do this manually, but it is a very intricate task that requires a lot of time and attention. A transaction monitoring software is a much more efficient way to monitor transactions.

Currency Transaction Reporting (CTR)

This feature is used in the United States and focuses on the amount of cash being transferred. CTR software spots transactions that are very high in value, or multiple consecutive transactions that together aggregate a big amount of money. According to the Bank Secrecy Act in the US, any transaction that is over $10,000 is immediately flagged. Currency Transaction reports are then filed and reported to the FinCEN (Financial Crimes Enforcement Network). AML software monitors the value of transactions and reports them automatically, so manual work isn’t required.

Regulatory reporting

Besides the previous measures, there are also extensive regulations on money laundering that companies need to follow. AML software can be used to keep track of audits and retain all the necessary records that companies need to present to ML enforcement authorities. In the UK, the main financial entity is the FCA (Financial Conduct Authority), who oversees all ML compliance. The EU’s 6th AMLD and the US Bank Secrecy Act are regulations that also require complex reporting and auditing. AML software essentially enables companies to comply with regulations without having to invest heavily in human resources.
[/et_pb_text]Money Laundering crimes are increasingly drastically all over the world.[et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” inline_fonts=”Lato”]

 

Features to look for in AML Solutions

The most important characteristic of AML software is its effectiveness. Ultimately, integrating new AML software will be a considerably high investment, so it is important to check if it offers everything you are looking for. Think artificial intelligence and machine learning, for instance. Ensuring that you have the latest and most efficient technology will make ML prevention a much more stress-free task.

Data monitoring and analytics are also features to look out for, as they will be extremely important in ensuring maximum security for you and your customers. Make sure that the software you choose presents information in an understandable way and that it is easy to manage, so that your finance or compliance team can easily collect and analyse results should they need to. Many payment providers offer a lot of security features, including regulatory compliance, for instance. It is worth checking their features before choosing to deploy a AML software individually.

 

About Imburse

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

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Benefits of transaction analytics

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By Mariana Almeida Marques

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Transaction analytics have long been a valuable tool for insurers and other financial institutions, and they are becoming more efficient than ever. We have previously discussed the potential of real-time payment analysis, as well as the obstacles of analysing real-time data and how businesses can overcome them. In this article, we will focus on exploring some of the benefits that transaction analytics can bring to businesses. Besides enabling you to instantly connect to any PSP or payment method, the Imburse platform also provides you with all the tools you need to optimise your payments system, including transaction analytics.  

 

Improve customer experience

Transaction analytics provide you with priceless customer insights that can help identify key trends and preferences amongst your customer base. Knowing your customer is crucial to ensure satisfaction and retention. Transaction data can be used to analyse what is going well, what is going wrong, and areas of improvement in terms of customer experience.

Making informed business decisions based on your customers’ preferences and their own behaviours will prove successful in the long-run. It will also make your business more competitive, particularly as more and more businesses adopt strong customer-centred approaches. Customers hold all the power, so by identifying their needs, behaviours and preferences, you will be able to better tailor your services to them and ensure higher rates of success. Simple behavioural aspects such as the most popular times of the day for purchasing services, what customers are buying or how often, can be pertinent to improving customer experience.  

[/et_pb_text]Transaction analytics can drive more efficient business decisions.[et_pb_text _builder_version=”4.9.2″ text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” custom_margin=”||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”|0px||||” header_3_font_size_tablet=”22px” header_3_font_size_phone=”20px” header_3_font_size_last_edited=”on|phone”]

 

Increase profits

If your planning on launching a new product or service, transaction analytics can help your business understand the need for this product, as well as your target audience and how successful the product may be once it reaches the market. As we have mentioned before, adopting a customer-centred business approach has proven to be incredibly beneficial for businesses, particularly in the last few years. With transaction analytics, you can also gather relevant data regarding the products your customers are looking for and what they are willing to pay, which may help support ideas for new products, services or add-ons.

Marketing is also a key area that can benefit greatly from customer insight and play a significant part in increasing profit for the company. Insights into customer behaviour can help your marketing team plan more targeted campaigns, reach more customers and improve ROI. Financial services is a fast-paced and ever-changing industry, so being adaptable, quick to respond to trends and agile in identifying sales opportunities is likely to guarantee your competitiveness in the market.  

 

Reduce costs

Accessing transaction analytics on a single platform, in a seamless and clear dashboard, can save you plenty of time and resources. Transaction data is extremely valuable, but it is also difficult to gather and analyse, especially if you partner with multiple PSPs and get individual data reports from each partner. Imburse provides you with a single reporting source, so you can easily draw insights from the data and quickly apply these insights into your business decisions.  

Generally, transaction analytics help you optimise your payment operations and reduce internal costs by focusing on the needs of your customers and finding more cost-effective solutions to meet those needs. Rather than making business decisions blindly, transaction analytics can provide you with insight into less efficient areas that need improvement, or areas that may require less investment.

[/et_pb_text]Transaction analytics can help businesses reduce operational costs.[et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” hover_enabled=”0″ inline_fonts=”Lato” sticky_enabled=”0″]

 

Ensure regulatory compliance

Security is a key concern for any business that takes payments, so there are increasingly more investments in this area. From an ethical point of view, every business should want to protect their customers and the business itself from online fraud. But there are also tight regulations that businesses must follow, such as the PSD2 regulation.

Transaction analytics can help you access your customer’s information and historical activity, so you can create a profile for them and even compare it to other customers. The principles of Know Your Customer are particularly relevant when it comes to online security. There is also a wide range of technologies that can detect fraud or suspicious transactions automatically and will notify you when a certain transaction needs investigation- some providers may offer this additional tool.

 

How Imburse can help

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

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Best payment authentication tools

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By Mariana Almeida Marques

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Ecommerce has irrevocably changed the way customers shop. Whilst online payments continue to rise steeply, so do the online security risks involved in electronic payments. There is no wonder then why payment players invest in bringing in the latest technology to keep customers and businesses safe.

Fortunately, not only scammers are getting smarter, but technology is too. The PSD2 regulation enforces the use of Strong Customer Authentication (SCA) in all transactions, so customers are required to provide at least two types of identification that can be something they own (like a mobile phone), something they know (like a PIN) or something they are (such as fingerprints).

To reinforce SCA, there is now a broad range of authentication tools available for businesses to ensure their customers are protected. We have previously discussed how you can ensure payment security for your customers. In this article, we will focus on authentication tools and list some of the most popular and effective tools available on the market, that PSPs may offer.

 

3D Secure

3D Secure is a protocol created by Visa Inc. and CA Technologies, now adopted by all payment networks. Visa uses it as “Verified by Visa”, MasterCard as “SecureCode”, Discover as “ProtectBuy”, Amex as “American Express SafeKey” and JCB International as “J/Secure”. You will likely encounter these designations when purchasing an item online.

3D refers to three domains that are involved in this protocol: the acquirer domain (merchant’s bank), the issuer domain (customer’s bank) and the interoperability domain (any payment system that is involved in the payment by connecting the issuing to the acquiring bank).

Essentially, this protocol brings another security layer to payments by requesting customers to insert a one-time code that was sent via email or text message. The customer adds his card details online and, if his card is registered for 3D Secure, he will be redirected to another page where he will be asked to insert this one-time code. If successfully, he will be directed to the merchant’s website again and the payment is completed.

 

Advantages and disadvantages of 3D Secure

3D Secure adds an extra task for the customer to complete, which slows down the payment initiation process. Fast checkout experiences are a must in retaining existing customers and ensuring customer satisfaction, so 3D Secure may be an hindrance to that. Nevertheless, customers want to feel safe and know that their data is handled well- their protection should be at the forefront of any business.

In 2016, 3D Secure 2.0 launched as a more modern and user-friendly version of the first 3D Secure protocol. Amongst other functionalities, it offers risk-based authentication where customers are screened without even realising, whilst they’re initiating the payment. Customers will only be requested to take additional authentication steps if the screening detects something suspicious with their data or transactions. This contributes to a more seamless payment experience.

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Address Verification Systems (AVS)

This authentication process compares the billing address that the customer entered in the checkout page with the billing address linked to his bank account. It is used by all major card networks (Visa, MasterCard, American Express and Discover) to verify the ownership of the card used for the transaction. Typically, this system only checks the numbers on the address, so it is usually the postcode, flat or street number. Currently, AVS is available in the UK, US, Canada, New Zealand and Australia.

 

Advantages and disadvantages of AVS

AVS is a fairly easy and widely accepted way to detect potential fraud. Since it is offered by all of the large card networks, AVS is automatically done once payment details are collected, and the gateway or processor will take care of it. However, AVS alone may not be 100% effective as there can be some small typos or errors in the address details entered.

A typo made by the customer doesn’t mean that the payment is fraudulent, just as a full AVS match doesn’t mean that the payment isn’t fraudulent. Therefore, this tool should be used alongside other tools to prevent misjudgement. AVS also requires merchants to review each transactions on an individual basis, which is a very detailed and time-consuming task.  

 

Biometric authentication

Biometric tests use customers’ biological characteristics to verify the ownership of an account. Once they open an account with a merchant they can scan, for example, their fingerprint, by touching their mobile phone’s screen. This information will be stored on the company’s database and used for comparison every time a customer initiates a payment.

Some examples of biometric features that can be used for authentication purposes include retina scans, fingerprint scans, iris recognition and facial recognition. There is an increasingly broader range of biological features that can be tested, such as voice or even hand shape.

 

Advantages and disadvantages of biometric authentication

Naturally, this type of authentication is fairly accurate, as it is very difficult to falsify biological features. It is also practical for customers who, instead of having to remember a PIN or password, can simply touch their mobile phone’s screen to be authenticated. Nowadays, convenience is key for customer satisfaction. Unsurprisingly, research shows that 54% of UK consumers would use biometric payments cards if they were available (Thales Group). However, unlike AVS or 3D Secure, biometric authentication isn’t easily available and may be expensive to implement or purchase from a third-party.  

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Geolocation

Geolocation uses the customers’ devices to identify their location and authenticate them. This allows merchants to know where each payment is coming from and potentially detect any fraudulent transactions. For example, if a customer initiates a payment in Brazil on day 1, and another payment in Australia on day 2, this can be considered suspicious. Merchants are able to block transactions from certain countries, which may also lead to an unnecessary loss in sales.

 

Advantages and disadvantages of geolocation

Firstly, privacy issues can come to play as customers may not be comfortable with sharing their location. Some geolocation tools may require the customer’s Wi-Fi to be on, which isn’t always possible if customers are on the go or simply have a weaker Wi-Fi signal. However, this tool is fairly convenient, as there are no passwords to remember or complex tasks to complete. Overall, just like most of the tools, this tool is more efficient when used alongside others. Multi-factor authentication continues to be the most popular and easy-to-use tool for merchants.

 

About Imburse

Imburse is a cloud-based middleware connecting large enterprises to the payments ecosystem, regardless of their existing IT infrastructure. Through a single connection to Imburse, enterprises can collect or pay out using a variety of payment technologies and providers around the globe.

In a world where consumers payment preferences and technologies are ever-evolving, Imburse works with insurers to future-proof their payment requirements. Regardless of the business area, market, or requirements, Imburse will connect you to your choice of technology and provider.

Reach out to our team below should you want to discuss how Imburse can help you. Our team is happy to show you what our platform can do for your business and offer you a free demo.

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The benefits of Smart Routing

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By Mariana Almeida Marques

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Seamless payment experiences are key in ensuring customer satisfaction. Unsurprisingly, there is a large number of payment tools that enable companies to optimise their payment processes and deliver fast and reliable checkout experiences to their customers. Smart routing is a particularly valuable tool for businesses that operate globally and deal with multiple payment providers. Imburse provides you with smart routing capabilities, so you can continue to exceed customer expectations and effectively leverage transactions.  

 

What is payment routing?

The basis of card transactions lie on payment routing that connects the Issuing bank to the Acquiring bank. For instance, when you insert your card details on an online checkout page, the merchant’s bank (acquirer) will route this set of numbers to the Issuing bank (customer’s bank), ensuring that the payment is taken from the correct bank account.

If the card details are wrong, or the bank is unable to route these details to the right bank account, the payment is unsuccessful. Declined payments can really have a negative impact on any business. Not only is the business losing sales, it is also potentially losing customers that may be purchasing from somewhere else in the next time. 

 

What is a routing number?

The routing number is a number used to identify your bank. In the US, this number is composed of 9 digits and may also be called Routing Transit Number (RTN) or American Bankers Association (ABA) routing number. This number isn’t confidential, so you may find it on your bank’s website or, alternatively, by logging in to your account portal online. In the UK, routing numbers are called sort codes and contain only 6 digits. Note that the routing number only identifies the bank- not your personal account, so you will need to provide more details, such as your account number, for the payment to be processed.

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What is smart routing?

Small businesses may have just one gateway and processor to process all of their payments. However, when businesses expand their services internationally, they need to make sure that their gateway covers all the countries they operate in, from currencies to payment methods, card types to issuing banks. They also need to make sure that each transaction is directed to the right gateway to prevent technical issues and declined payments.

Smart routing is particularly beneficial for large businesses who, due to their sales size and geographical reach, have to deal with multiple gateways and processors to accommodate customers’ needs. Having more than one processor naturally makes their payments system more complex and harder to navigate. Functionalities such as smart routing play a huge role in facilitating transactions, ensuring that customers can choose however they want to pay and that their transactions will be routed to the most suitable gateway.

This technology accesses each transaction and routes it to the best gateway, based on multiple factors such as currency, payment type, card issuer, location or amount. By using smart routing, merchants are ensuring transactions have the highest chances of success. Smart routing can be incredibly helpful not only for businesses that operate internationally, but for those that have very large sales volumes, as some gateways may experience technical failures when sales are particularly high (think Black Friday, for example, for ecommerce businesses).

[/et_pb_text]payment routing can be helpful for businesses with high sales volumes[et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”18px” inline_fonts=”Lato”]

Benefits of smart routing

  • Higher success rates

As mentioned previously, smart routing enables each transaction to be routed to the gateway that has the highest authorisation rates. In case the transaction is declined by one gateway, it will automatically be routed to the second best gateway. This prevents payments from being declined and prevents your company from losing potential sales.

  • Lower transaction costs

Each gateway has its own transaction fees. By routing each transaction to its most suitable gateway, companies can better leverage transactions to lower costs. Think of currency exchanges, for instance. If your company is based in the UK and your customer is based in Portugal, choosing a gateway that accepts Euros will avoid extra currency exchange costs.

  • Customer satisfaction

Customers are expecting a fast and seamless payment experience. If a transaction is declined, they are naturally more likely to leave the checkout page and look for other companies to purchase from. Providing your customers with a wide variety of payment options and a fast and reliable checkout process can increase customer satisfaction and, potentially, customer loyalty- a highly important metric for any business.

[/et_pb_text]payment processors are key for every business.[et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”18px” inline_fonts=”Lato”]

How Imburse can help

Imburse enables companies to connect to any payment provider or technology available in any market. By connecting to our platform, you will be able to quickly and easily deploy any payment technology you want. Aside from simplifying integrations and saving you time, money and resources, the Imburse platform comes packed with all the tools and functionalities you need to fully optimise your payments system.

We provide you access to all the latest technologies at all times, including smart routing tools to enhance your customers’ payments experiences. If you would like to know more about how Imburse can help your business, drop us a message below. Our team will be happy to guide you through our solution and offer you a free demo.

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What are ACH payments and how do they work?

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By Mariana Almeida Marques

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Did you ever wonder how bank-to-bank transfers are processed in the US? Similar to the Bacs scheme in the UK, the United States have their own clearing house, responsible for processing bank-to-bank electronic payments across the country. In this article, we will explain you ACH payments in more detail and answer some of the most popular questions around this topic.

What are ACH payments?

ACH payment is a type of bank-to-bank transfer made via the Automated Clearing House, or ACH, in the US. The Automated Clearing House is a network used for moving money between banks without the involvement of card networks (such as Visa and MasterCard). So, whilst a traditional payment is processed through card networks, a ACH payment is processed through ACH.

The ACH network is managed by Nacha, the National Automated Clearing House Association. Because it only runs in the US, ACH payments are only available in the US as well. However, each country typically has their own “automated clearing house”, so, their own network to clear bank-to-bank transfers. In Portugal, for instance, that network is called SIBS, in the UK it is called Bacs Payment Schemes Limited, and in Australia it is called BECS (Bulk Electronic Clearing System).

Note that whilst ACH is managed by Nacha, all ACH payments are either processed by the US Federal Reserve (central bank) or The Clearing House, a private institution owned by the largest banks and financial corporations in the US. Traditionally, the Federal Reserve processes about half of all ACH payments, with The Clearing House processing the other half.

Types of ACH payments 

The ACH network is used to process two types of payments:

ACH credit

ACH credit represents the movement of money being pushed from one bank account to the other (payers push their money to the payee). This includes direct deposits and direct payments. Direct deposits are electronic bank-to-bank transfers from companies to individuals. They can be used by companies to, for instance, pay salaries or expenses to their employees.

Direct payments, on the other hand, are electronic bank-to-bank transfers that can be made by individuals or organisations. Direct payments can be used to pay a bill online or send money to a friend through payment apps such as Venmo.

ACH debit  

ACH debits represent the movement of money being pulled from one bank account to the other (the payee pulls their payment from the payer). Debit payments includes direct debit, so any recurring payment set up by a company you ordered services from. With your authorisation, this company schedules recurring payments that will automatically be debited from your account every month. Direct debits are used for bills or subscriptions.

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Advantages of ACH transfers

ACH is relatively low-cost when compared to card payments, as it avoids card network fees. It is also a fast and reliable payment scheme that doesn’t require much time to set up. As with any other electronic payment scheme, ACH is heavily regulated to avoid fraud, and it is known to be much safer than paper checks. Understandably, ACH transfer are amongst the most popular payment schemes in the US, moving around  $43 trillion every year.

How long do ACH payments take to be processed?

ACH payments are settled four times each working day. The ACH network actually offers three different plans: same-day, next-day and two-day payments. It is up to the payer to choose which plan works better for their situation. Though ACH payments may be processed during the weekend too, they can only be settled when the Federal Reserve is open.

The Federal Reserve is open on every business day from 7:30am to 6:30pm, and closed on the weekends and bank holidays. Therefore, should you initiate a payment outside these business hours, or close to a weekend, the payment settlement may be delayed. You should also take into consideration your own bank’s cut-off times, and these may vary from bank to bank.

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Is there a transfer limit?

Same-day ACH payments currently have a limit of $100.000. However, Nacha has approved the increase of this value to $1 million, which will be effective as of March 2022. Banks also impose a transfer limit to their customers, and the values vary widely. Bank of America, for example, has an ACH transfer limit of $2,000/day or $5,000/month for next-day transfers, and Chase has a limit of $10,000 per transfer, or $25,000 per day.

Some banks such as Bank of America, SunTrust and Citizen’s Bank also charge a transfer fee of up to $10 for ACH payments, and other may not allow using ACH for international transfers. It is worth checking the transfer limits and additional fees with your bank before making an ACH payment.

About Imburse

Imburse connects companies to the global payments ecosystem. Through our platform, you can integrate any payment provider or payment technology you want. We give you the freedom to quickly and easily expand your services to other countries, knowing that you will always have access to the latest technologies to meet customers’ needs, no matter where they are in the world. If you would like to know more about Imburse, reach out to our team via the button below.

[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.4.4″ max_width=”500px”][et_pb_column type=”4_4″ _builder_version=”4.4.4″][et_pb_button button_text=”Contact Us” button_alignment=”center” module_class=”sg-popup-id-612″ _builder_version=”4.4.4″ custom_button=”on” button_text_size=”16px” button_text_color=”#ffffff” button_bg_color=”#0937f2″ button_border_radius=”8px” button_font=”Lato|300|||||||” button_use_icon=”off” custom_padding=”8px|15px|8px|15px|true|false”][/et_pb_button][/et_pb_column][/et_pb_row][/et_pb_section]

What using SaaS software could mean for your bottom line and business growth

The use of fully integrated SaaS technology could reduce the costs and waiting times associated with global connectivity, enabling cross-border payments and expansion into new markets. Robin Amlôt of IBS Intelligence speaks to Oliver Werneyer, CEO & Co-founder, Imburse Payments, on the impact of integration-free access to any payment technology, regardless of the service provider.

What is a wire transfer?

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By Mariana Almeida Marques

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If you have made international business payments in the past, or even transferred money to a family member that lives abroad, it is likely you have used wire transfers to do this. International payments are nothing new- but wire transfers may be a less popular term. In this article, we will discuss what are wire transfers, how they work and the pros and cons of using this payment type.

 

Wire transfer meaning

Wire transfer is a bank-to-bank Electronic Fund Transfer (EFT) from one individual or institution to another. This type of transfer is often used to send larger sums of money internationally, though it can also be used for domestic payments. Wire transfers don’t actually transfer money, they only transfer bank details between the issuing and acquiring bank (more on this below). You can initiate a wire transfer directly with your bank, or with non-bank partners such as Western Union.

 

How do wire transfers work?

When your bank initiates a wire transfer, a set of information is passed through to the Acquiring bank. Though banks may have different information requirements to process a wire transfer, these details may include: recipient’s name, address and account number; bank’s name and address; amount of cash to be transferred; reason for the transfer; routing number of SWIFT/IBAN codes. This may also depend on the country you’re sending the money to.

In a wire transfer, the payers pays the whole sum upfront at their bank, and provide the bank with all the information required. From there, the issuing bank sends a message to the acquiring bank with payment instructions, using a network such as SWIFT or Fedwire (operated by the US Federal Reserve Banks). This network ensures that the payment information is sent in a secure and fast way.

No physical money is actually moved- only the information mentioned above. When the acquiring bank receives the information, they will deposit the amount of money from their own funds into the customer account. The two banks will later settle the payment between them, and the payment is processed via a clearing house.

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How long do wire transfers take?

Wire transfers are processed on the same day for domestic payments and payees may receive the money sum within just a few hours. For international transfers, it may take up to two days for the transfer to be settled as it will have to go through the national clearing house, plus a processor from the country you transferred the money to. Considering the speed at which wire transfers are processed and settled, this may be the ideal payment type for someone who needs to make a big transfer urgently.

 

What is the amount limit for wire transfers?

By law, there is no limit to the amount of money you can transfer via wire. However, most banks impose a daily limit, and some may impose a limit per transaction too. Daily limits may range between £50.000 to £100.000 in the UK. The amount limit may also depend on the type of bank account you have, the laws of each country and whether the transfer is domestic or international. In the US, for example, you are required to fill in a form for any transfer that is over $10.000.

 

Advantages and disadvantages of wire transfers

Wire transfers are an efficient and convenient way to send money abroad, no matter where you are based. You can initiate a wire transfer by visiting a branch, via phone or online, and send money to anywhere in the world. Because the limit for how much money you can send is quite high when compared to other payment types, wire transfers may be the best option if you need to transfer a large sum of money. Equally, wire transfers are cleared in real-time for domestic transfers, and the recipient can use the funds straight away. They are also known to be a safe payment method, regulated by the major financial institutions in every country.  

However, like any other payment type, wire transfers come with its disadvantages too. Firstly, they are irreversible- meaning that you can’t cancel a wire transfer or get your money back if you send it to the wrong person. For this reason, you need to be extremely careful in ensuring that you add in the correct bank details and that you know the person you are sending the money to in order to avoid being scammed.

Similarly, if you use a non-bank wire transfer company to transfer your money, you may struggle to track the recipient. Lastly, wire transfers have stipulated transfer fees that can be as high as £40 per transaction in the UK, so you need to verify these fees directly with your bank before initiating the payment. 

[/et_pb_text]Wire transfer is a bank-to-bank Electronic Fund Transfer (EFT) from one individual or institution to another. [et_pb_text _builder_version=”4.9.2″ _module_preset=”default” text_font=”Lato||||||||” text_text_color=”#000000″ header_font=”Lato||||||||” header_text_color=”#000000″ header_font_size=”24px” header_2_font=”Lato||||||||” header_2_text_color=”#000000″ header_2_font_size=”24px” header_3_font=”Lato||||||||” header_3_text_color=”#000000″ header_3_font_size=”24px” inline_fonts=”Lato”]

 

Wire transfer fees

Banks often charge a transaction fee that ranges from £0 to around £40 per transfer. This fee varies widely and depends on multiple factors, such as:

  • Incoming vs outgoing: incoming transfers are cheaper (some banks like Metro Bank and Santander don’t even charge anything). This is because the payer often pays for most of the costs.
  • Domestic vs International: domestic payments are cheaper, as they involve less processing and less bank operators.
  • Recurring vs one-off transfers: some banks may offer discounted fees if the payer sets up recurring wire transfers
  • Additional costs: such as initiation fees for wire transfers initiated via a branch or via the phone, rather than online; tracer fees, if the payer requests to track the transfer; or exchange fees for international transfers.

 

How Imburse can help

Imburse connects companies to the entire payments ecosystem. Through our platform, you can integrate any payment provider or technology you want in a fast, simple and cost-effective manner. This will not only save you time, money and resources, but enable you to accept a wide range of payment methods, including wire transfers for collection or pay-out. With Imburse, you can fully optimise your payments system, continue to exceed your customers’ expectations and reach new customer bases across the globe. Get in touch with our team below should you have any question or be interested in knowing more.

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