What’s the most valuable non-cash payment channel in the United States?
Most people would say credit cards—and most people would be wrong.
Continue reading “ACH Myths Busted: Clearing Up the Confusion on Clearing Houses”
Why should we talk about Web Content Accessibility Guidelines (WCAG)? The present and future of engagement are online and web based. With the growth of the metaverse, ongoing drive towards digital transformation and meteoric rise in online purchases, the ability to deliver a great digital experience has become table stakes.
Trend trackers have pointed out how much more important the web experience has become since the start of the pandemic. But for the more than 1 in 5 people with a disability, these experiences might come with caveats. Worldwide, more than 220 million people have a vision impairment of some sort and over 2 billion have a disability of some kind. What implications does this have for web design? Quite a lot!
The need for a set of web content accessibility guidelines was recognized decades ago. We’ll explore what those standards are, but how have they evolved over time, and when did they first come together?
To find the origins of WCAG we have to go back to before the Y2K crisis. Back to the previous millennium. The year 1999. On May 5th of that year, the HTML-focused WCAG 1.0 helped shaped the standards for web accessibility and digital experience. In 2008, those rules got an update in the form of WCAG 2.0.
Where the original had focused on HTML, the new guidelines (and the 2018 WCAG 2.1) expressed a technology-agnostic approach to accessibility for “web content on desktops, laptops, tablets, and mobile devices.” The goal of WCAG overall has not changed from creating a more accessible web environment, but each update has given additional guidance on this critical topic.
The standards set out in WCAG 2.1 cover four key factors for accessible design along with a series of conformance criteria to evaluate WCAG compliance. In particular, WCAG 2.1 indicates web content should be perceivable, operable, understandable, and robust. What do these mean?
“Information and user interface components must be presentable to users in ways they can perceive.”
If a user cannot see, hear, or otherwise interact with web content, it is not accessible to them. This means, for example, that non-text content should have transcripts, alt-text, or other features meant to enable screen reading. Perceivable design isn’t limited to text accessibility, but WCAG 2.1 has additional guidelines on creating more perceivable content.
Example: Thanks to labels for all text fields in the screens of CSG Forte Checkout, users can understand what information each field is meant to include, allowing them to complete the form.
“User interface components and navigation must be operable.”
If a user cannot interact with the interface or navigation as designed, then the content therein is not accessible to them. One way to address this is to ensure that all interfaces have keyboard-based alternatives to mouse-based operation. Other types of operability blocks exist, but WCAG 2.1 provides several ways to ensure operable accessibility.
Example: Thanks to correct contrast ratios and keyboard controls to the date picker tool in various CSG Forte offerings, users can input the date they want to pay their bill using only the keyboard.
“Information and the operation of user interface must be understandable.”
If a user cannot understand the content or user interface, then it is not accessible to them. The most basic understandability feature is including language options and translation-friendly pages, but clear labeling and acronym explaining features are other techniques to make web content more understandable. Whatever web content you create, you want your readers and users to understand it. Following the WCAG guidelines makes this that much easier.
Example: Because CSG Forte error messages are described in text along with outlining for invalid input fields, users can parse error messages they might not otherwise understand.
“Content must be robust enough that it can be interpreted by a wide variety of user agents, including assistive technologies.
Where the other three factors are focused on making web content accessible to the user, the “robust” category of WCAG guidelines is focused on making content available to technologies used by those users. This means ensuring that pages are parse-friendly for text-to-speech and other technologies.
Where WCAG is a set of guidelines to create more accessible content online, there are other considerations for web content as well. The Americans with Disabilities Act (ADA) and Section 508 (508) contain standards for web accessibility. Unlike WCAG, ADA and 508 have legal ramifications.
This regulation is meant to ensure that the federal government provides accessible services over all information technology communications channels. This extends from phone to web and beyond. Where WCAG provides wide reaching guidance on accessibility, 508 has specific requirements for federal offices and services. These include providing accessible computer, phone, and mobile services to employees and citizens.
ADA regulation is meant to prevent discrimination against Americans with disabilities by businesses, non-profits, and governments. While ADA regulations apply across more areas than web content, digital experiences should be made accessible as well. Although ADA has existed for over 30 years, many websites and digital products have no yet achieved ADA compliance.
OTHER READING: Did You Know CSG Forte is ADA Compliant?
With more than 2 billion disabled individuals around the world, creating an accessible experience isn’t just the right thing to do, it also means reaching a wider audience. Beyond compliance, accessible design allows consumers to do more online, including making purchases and using products.
For example, providing a secure way to validate payments inputs for blind customers can ensure that they enter the correct information. This then means that their transactions can processes correctly. Put in terms of WCAG 2.1, this means ensuring the input is perceivable by the user and that the validation option is operable for someone who cannot see.
As the world becomes ever more digital and with the continuing interest in the metaverse and other cross-platform digital content, being able to meet consumers, corporate clients, and users where they are will remain essential to business success. Providing accessible payment options does require a framework and WCAG provides a powerful starting point for better digital payments.
To learn more about how you can create exceptional accessible online payments, check out CSG Forte’s payment solutions.
From computer with physical data tapes that had to be driven from bank to bank, to modern, fully digital clearing houses, Automated Clearing House (ACH) processing has become an integral part of digital commerce. In 2021, over 29 billion payments valued at $72.6 trillion were processed over the ACH Network. To put this in perspective, the amount of money exchanged between consumers, businesses and governments last year could cover the cost of one 2022 Ferrari Portofino Ms for every person in the United States. Contactless payments especially have turbocharged this trend as more consumers seek out frictionless payments on the phone. Whether these take the form of tap-to-pay wallet type experiences or purely digital contactless payments, each of these frictionless payments is an opportunity to employee ACH in your business.
But let’s get back on track. What is ACH processing, and how could ACH processing impact for your business
ACH processing is one of the key ways to securely send and receive money, for credit and debit card payments For example, when your paycheck is deposited into your checking account, your employer is depositing your pay via ACH processing. Or, conversely, if a customer makes a payment for your goods and services, the bank associated with your customer’s credit or debit card can deposit your funds directly to your business account.
ACH was designed to support increasing payment volumes as the world began to transition to automated payments. In the 1970s, financial transaction volumes were becoming difficult to manage with early computer infrastructure. As a result, the Federal Reserve stepped in to fund an automated system build and use computer programs specifically designed to process and settle payment claims between financial institutions.
With ACH, merchants can process check and card payments without making authorization requests to credit card networks or issuing banks. Instead, ACH processing goes through the Federal Reserve or the clearing house to secure payments from a Receiving Depository Financial Institution (RDFI). The RDFI then posts the payment into the requestor’s account.
All of this means that instead of paying network fees to a credit card company, ACH payments cost much less to process. This ends up saving the merchant money with every transaction. And very soon, merchants will have a chance to collect even more money with ACH.
The National Automated Clearing House Association (Nacha) has repeatedly raised the daily transaction limit for ACH. This means that not only do ACH payments cost merchants less, but they can also accept much larger payments (up to $1 million per day) and recognize revenue faster.
No matter what payment options you offer, customers want to pay in the most convenient ways for them. Often, this means they will use a credit card or another form of digital and contactless payments. But added convenience can also add costs. So what happens when a credit card payment is processed in the traditional way?
Each of these steps adds cost. Not only does the merchant pay a nominal fee, known as payment settlement or interchange, to process the transaction, but the credit card network and issuing bank charge fees to the merchant for each credit card transaction made by their customers.
At first glance, the ACH payment process looks very similar, but there are a few core differences.
The ACH processing starts the same way at the point of sale before entering a processor’s system. But that’s where the similarities end.
These last three steps are what make the difference in cost and security between ACH and traditional credit card payments. Because ACH avoids navigating several fee-incurring steps, the end result is less costly and more reliable, especially when dealing with high transaction sizes as large as one million dollars.
One major benefit of ACH processing is the speed with which a merchant can receive customer funds. For most ACH processors, this means that funds may be available as soon as the next day, depending on when the transaction occurred. However, Same Day ACH is a newer process, one that allows merchants to receive funds the same day the purchase was made.
Why does Same Day ACH processing matter? It’s simple. Same-day processing means merchants collect funds faster. This maximizes the benefit you can generate from ACH payments. Effectively, Same Day ACH lets merchants access their payment funds quicker so that they can invest in their businesses quicker. The increased cashflow from faster processing and fewer fees than processing credit card payments means that businesses who use Same Day ACH can get back to doing what they do best and worry less about transaction costs.
However, most payment processing companies do not offer Same Day ACH. And if they do, they do not own the technology. This means that merchants working with payment processors not owning the technology receive additional fees for processing Same Day ACH.
CSG Forte is different. CSG Forte owns the Same Day ACH technology and can offer merchants the ability to receive funds quicker and at a cheaper price than working with other payment processors.
Simply put, ACH processing allows businesses to receive and have access to payment funds faster. Not only that, but the larger daily transaction limit means merchants can access more payments funds via ACH quicker, as well. Beyond the speed and convenience of ACH, businesses save money on each ACH transaction. Because they don’t need to pay settlement or interchange fees that arise from merchant networks, merchants can secure a larger chunk of each transaction. Especially when considering that compared to cash and paper checks ACH is also more secure and cannot be physically lost, it’s a powerful tool for businesses in many industries, from retail to healthcare and from financial services to real estate and telcos.
With the power that a great ACH solution can bring to your payments, it is no wonder that so many brands are adding it to their toolbox. However, if you’re interested in learning more about ACH processing or how you can get the most out of ACH with Same Day Processing, CSG Forte can help.
Ready to learn more about ACH and how it can drive more value for your business? Check out CSG Forte’s ACH processing capabilities.
Think of your favorite news outlet, any news outlet. Chances are, if you visit their site right now, the leading topic will be the economy. From inflation to new job numbers, several metrics and topics are commonly discussed when analyzing the economy. However, the Automated Clearing House (ACH) network often goes overlooked in economic discussions. And it definitely shouldn’t—with over 7.5 billion payments valued at $18.9 trillion in the fourth quarter of 2021 alone.
With payment volumes and values continuing to grow, new rules are needed to foster the growth of the ACH network. The National Automated Clearing House Association (Nacha), an organization that governs and facilitates the ACH Network, develops standards and rules to ensure the ACH Network operates smoothly, and that payment information transfers securely and quickly.
In response to substantial increases in ACH payments, Nacha announced a rule that will increase the same-day ACH spending limit. Beginning March 18, 2022, businesses will be able to transfer same-day credit and debit payments up to $1 million, up from the current $100,000 cap.
And with more verticals likely to adopt this because of the increasing amount of payments they can accept, there’s never been a better time to start offering this payment option. Get paid faster, lower payment processing costs and easily manage recurring payments.
CSG Forte is the leading payments provider of same-day ACH, supporting over 73,000 merchants. With a best-in-class solution and decades of experience, we deliver a scalable and seamless solution to companies operating in a wide variety of verticals, including integrated software vendors (ISVs), healthcare, property management, government, insurance, enterprises and utility organizations.
Our payments platform can turn what was once an operational expense into a revenue generator through our revenue optimization solutions. Our platform optimizes ACH payments by validating payments in real-time, automatically re-presenting failed payments and keeping recurring payments on track.
Want to learn how you can optimize your ACH payments and take advantage of the rule change? Click here to learn more.
Handling nonsufficient funds (NSF) payments accurately and efficiently helps businesses protect themselves from financial losses by minimizing the impact of unpaid transactions. Promptly addressing NSF payments through clear communication, compliant follow-up procedures and timely resolution enables recipients to recover funds and prevent further losses. Streamlined handling can also help businesses maintain strong customer relationships, reducing the likelihood of service disruptions due to incomplete payment.
At CSG Forte, our recovery solutions can help equip your business to handle NSF situations effectively. Our re-presentment options enable you to recover the funds for each NSF payment at no charge. More importantly, these automated solutions save significant time and resources, allowing you to focus more on the responsibilities that matter most for your business.
An NSF payment is a returned check or Automated Clearing House (ACH) network payment that was unable to be completed due to nonsufficient funds. This means the bank has refused to honor the payment because there isn’t enough money in the account to cover it. NSF on checks is often referred to as bad or bounced checks.
When the recipient tries to take payment, the bank will return it due to insufficient funds in the account. This situation can result in fees for both the payer and the recipient trying to collect the funds.
Anyone who has tried spending more money than what’s available in their bank account has likely been issued an overdraft charge or an NSF fee. Although many believe the two terms are interchangeable, there are some critical differences between them:
Several common causes of an NSF payment include unpredictable cash flow, inadequate fund management, delayed or missed payments and unexpected expenses.
Specific situations that may incur an NSF fee include:
When an NSF payment occurs, a number of negative consequences may follow. The financial institution of the person issuing the payment makes one of two choices.
The bank may decide to let the ACH payment or check push through. This, however, would put the account holder into an overdrawn status. For some banks, this means they will charge a fee simply for overdrawing, but may continue to charge for each day or certain amount that they are over. It can end up burning quite a hole in the wallet.
The bank may refuse to honor the payment. The bank will not allow the funds to be processed, and the account holder will likely be charged a fee just for issuing the payment without having funds available.
Potentially, the returned item could sink the depositor’s account into overdrawn status, also initiating an overdraft fee. Banks consider both the depositors and the account holders as being responsible for the NSF payment, and they have no problem making it a very expensive mistake.
NSF payments can be very frustrating and costly to businesses that need to process the transactions. Some businesses decide not to accept ACH payments or checks at all as a last resort. However, this choice limits payment options for your customers.
For many businesses, accepting paper and eChecks is a wise decision. This practice gives customers the flexibility of selecting a payment option that works for them—and many people just want to simply have a payment come right out of their bank account.
But how can businesses handle NSF payments? It’s wise to have a plan set into place so that when NSF payments appear, it isn’t a complete disaster. NSF re-presentment is your best option, as it allows you to recover the funds for each unsuccessful ACH transaction.
When an NSF payment occurs, re-presentment will simply re-present the payment at a later date. This way, the payment has another chance to clear. CSG Forte’s NSF re-presentment option lets you select the date you wish to re-present the payment, enabling you to choose a time when you think there is a stronger likelihood that the funds are available.
You may know, for instance, when your customer gets their paycheck. Scheduling NSF re-presentment on or directly after this date increases your chances of accessing the funds and clearing the payment.
Our Recovery Solutions allow businesses to automate the process of recovering NSF payments. We will attempt to re-collect NSF payments up to two times on your behalf for ACH payments, saving you significant time and hassle. Benefits you’ll enjoy with this service include:
At CSG Forte, we make collecting NSF payments simple. When you’re hit with an NSF payment, our solutions will automatically attempt to recollect the ACH or eCheck payment up to two times.
Contact us today to learn how one large enterprise organization recovered $78M in principle through CSG Forte’s Recovery Solutions.
If you were paying any attention to rumblings in the payments industry in the mid-2000s, you probably heard someone say the words “Bitcoin,” “cryptocurrency” or “blockchain.” Following these utterances, you probably met the stare of the person talking to you with either a blank look or a look of skepticism, as you probably connected these terms with the dark web and nefarious purchases.
Now, cryptocurrency, and Bitcoin in particular, is becoming more mainstream – even if many Americans are still confused by the mysterious world of digital currencies. Many skeptics consider digital currency to be a speculative bubble. Some consider cryptocurrency to be the future of payment processing. Either way, let’s hop into the discussion to explain what exactly cryptocurrency is and why it should matter to you.
Cryptocurrency is the general name given to represent different digital coins. Many people are most familiar with Bitcoin, but there are various altcoins that compete with Bitcoin in different ways. Ethereum, Ripple and Litecoin are some major altcoins you may have heard of (but there are others in the market).
Ethereum, Ripple and Litecoin operate a bit differently from Bitcoin. Bitcoin operates off a blockchain, which essentially is a digital ledger of all transactions that occur with the specified cryptocurrency. To put it really simply, the blockchain is managed by ledger-keepers, who are also called “miners.”
While trying to explain the inner-workings of blockchain gets super technical (just think really, really big computers with lots of processing power), just know the ledger-holders must all agree on any changes to the blockchain for every transaction. This keeps everything (the ledger, your transactions and so on.) accurate and secure. For Bitcoin miners, they can earn a specific number of Bitcoin just by keeping track of the transactions that occur – also commonly called “mining.”
Cryptocurrency is founded off the idea of decentralization. Unlike most payment options to-date, cryptocurrency has no general need for the intermediary, i.e. the banking system. This intermediary system has been integral in maintaining the integrity of our monetary system.
Banks, especially when it comes to digital transactions such as stocks and non-cash transactions, help validate transactions. This is especially helpful in preventing “double-spending” in which a transaction is replicated, primarily through error or from a matter of hacking. The claim that Bitcoin makes, however, that that the blockchain system is more secure than any banking system, processes transactions faster than any bank can dream and gives the transactional authority back to the person who holds the money.
Cryptocurrency in its essence is a peer-to-peer method of transacting business – and it’s for this reason that cryptocurrency got a bad rap in some circles. People who have been in-the-know about cryptocurrency remember the coins being used to fund dark web transactions and other (sometimes illegal) enterprises. No longer is this the main use case, however. Now, people who own Bitcoin and other altcoins can use their money to purchase items found on the common market.
Whether you believe that cryptocurrency is just a flash in the pan of the payments industry, or you believe cryptocurrency to be the future of our global economy, most can agree that it’s an exciting time to witness the volatility and growth of these digital markets.
In the world of electronic payments, NACHA (National Automated Clearing House Association) governs and dictates the regulations for processing electronic transactions through the Federal Reserve. The regulations are very serious, utilized in legal proceedings regarding transactions and relied upon by banks, payment processors, and both federal and state governments. NACHA keeps the order for the industry, and it’s important to abide by every one of their regulations.
Whenever a transaction is submitted, NACHA needs an SEC code along with it.
SEC stands for “Standard Entry Class,” and is basically a code that denotes the way a customer authorized a payment. When you apply for payment processing, sometimes you will find that certain types of payment methods are associated with lower costs.
For now, we’re going to give you a quick glossary of SEC codes for easy reference.
POS/POP
POS (Point-of-Sale) and POP (Point-of-Purchase) entries refer to single debit payments made in-person via credit/debit card (POS) or converted check (POP). Both the card and/or the check are used to record the account information in association with the payment, and the original method of payment is then returned to the customer.
PPD
PPD (Prearranged Payment and Deposit Entry) refers to Direct Deposit entries and any Preauthorized Bill Payment applications. In this way, these payments can be both debits or credits (meaning funds can be removed or deposited into an account) and either single or recurring (occurring as a one-time payment or scheduled multiple payments).
WEB
A WEB (Internet Initiated Entry) is simply any debit via the Internet. These entries may be single or recurring.
These debits must be authorized by the receiver via the Internet. In other words, if the authorization itself was actually received in person, via U.S. Mail or by phone, for example, even to actually suffice for a payment from the Internet – it’s not really a WEB entry. However the authorization was received is how the transaction must be classified via the SEC code.
Also bear in mind you may only initiate a credit here as a reversal of a WEB debit. You can’t submit a credit using the WEB entry code.
TEL
TEL (Telephone Initiated Entry) entries are single debit entries authorized via the telephone. In this oral authorization entry there must be a pre-existing relationship between the receiver (person authorizing the payment) and originator (person/entity receiving the payment). If there is no relationship already in place, then the receiver has to make the phone call.
Additionally, all TEL transactions have to be recorded and kept on file for a minimum of two years from the date of the transaction. If the transaction is not recorded, then the originator needs to provide the receiver with a written notice that confirms the oral authorization before the payment settles.
CCD
A CCD (Corporate Credit or Debit) is also known as “Cash Concentration or Disbursement.” These entries can be either a credit or debit – and occur specifically between corporate entities. It can be a single entry or recurring.
All business bank account transactions are listed under this SEC code. A signed authorization has to be obtained either separately or included in the contract between the businesses prior to the transaction date.
ARC
An ARC (Accounts Receivable Entry) is defined as a check conversion that is originally received via the U.S. Mail. This includes the USPS (United States Postal Service), as well as courier services like FedEx and UPS. According to NACHA, this does not include personally delivered or night drop-box items. Corporate checks are also not included.
There’s also a slight change you’ll run into these less common SEC codes:
CTX
CTX (Corporate Trade Exchange) entries are initiated by originators to pay or collect their obligations. The funds are transferred to other organizations and so mirror the same business entity requirements as the CCD entry code. Both credits and debits are allowed.
RCK
The RCK (Represented Check Entry) entry refers specifically to single debits that occur as a result of check representment. Check representment occurs after an item is returned NSF (Non-Sufficient Funds), or is bounced. The service will simply represent the check at a later, scheduled date after it is returned. Some businesses choose to initiate check representment in order to attempt to recollect their funds. For merchants that use RCK entries, a notice must be displayed visibly at the POS.
BOC
BOC (Back Office Conversion Entry) entries are single debit entries that are initiated by source documents (checks) received at POP or manned bill payment locations (in-person). These checks are collected first then converted to ACH during back office processing.
CIE
A CIE (Customer Initiated Entry) is a credit initiated usually through a bill payment service by an individual. These are meant to pay an obligation.
XCK
The XCK (Destroyed Check Entry) refers to a replacement entry that is initiated when an original check is unreadable, lost or destroyed and cannot be processed.