ACH PaymentsAre they efficient?

by: John Scianna

International Transfers Done Right!

Sending a check or an ACH payment is this easy...

for the user.

However, the process may not be so easy.

Bob sending a check to his Mortgage Lender or

authorization to use ACH payments is only the first

step.

Bob Mortgage Lender

Next is where the process can get confusing.

Considering the information flows two

ways.

The first information flow starts with Bob authorizing the ACH

Payment.

Bob authorizes ACH payments

Step 1

Step 2 Step 5

Mortgage Lender

ML’s Bank

Bob

Bob’s BankACH Operator

Step 3 Step 4

PaymentDetails

Bank checks for sufficient funds

ACH Entry ACH Entry

If Bob’s account has sufficient funds, his bank

will debit his account, starting the information to

flow the other way.

ML updates Bob’s account

Step 10

Step 9 Step 6

Mortgage Lender

ML’s Bank

Bob

Bob’s BankACH Operator

Step 8 Step 7

Accountcredit

Bob’s account is

debited

Bank debits ACH operator

ACH operator debits bank

The whole process ends up looking like this.

ML updates Bob’s account

Mortgage Lender

ML’s Bank

Bob

Bob’s BankACH Operator

Accountcredit

Bob’s account is

debited

Bank debits ACH operator

ACH operator debits bank

Bob authorizes ACH payments

Bank checks for sufficient funds

PaymentDetails

ACH EntryACH Entry

Sometimes the mortgage lender can be your bank reducing the

number of parties involved.

Given the number of different institutions taking part in one

transaction, the banking system can be quite

inefficient.

Considering ACH payments are only used

for domestic transactions, imagine the complexity of international payments.

Don’t worry, we make that simple.

Use CoinPip now for international payments and get your first five

transactions free*.

International Transfers Done Right!

angel.co/coinpip founders@coinpip.com

angel.co/coinpip | founders@coinpip.com