Angie Logan VP, Treasury Management
In the fast-paced world of finance, the demand for efficiency and immediacy has given rise to a transformative trend: lightning-fast payments. Gone are the days of waiting for transactions to clear or checks to arrive in the mail. Today, business customers are embracing the benefits of rapid and real-time payments, ushering in a new era of seamless financial transactions.
The product you need comes down to how fast you need to send payments. Do you need to get them where they’re going in a few days or in a few minutes?
While rapid payments are like they sound, they happen relatively quickly, real-time payments refer to electronic transactions that occur instantly or with minimal delay. Unlike traditional payment methods that involve batch processing and settlement delays, real-time payments enable the transfer of funds rapidly. Depending on your needs this could be a few days, same-day, or instant transfers.
Benefits to Fast Payments
If you’re looking to take the next step in your business’ success, rapid and real-time payments can be an important building block along the way. Some key benefits to this payment type include:
- Speed and Efficiency – These payments eliminate the waiting game, providing unparalleled speed in financial transactions. Whether it’s settling invoices, payroll processing, or making purchases, the immediacy of these payment types enhances overall efficiency.
- Improved Cash Flow Management – For businesses, managing cash flow is critical. Rapid and real-time payments empower organizations to have better control over their finances, enabling timely payments and reducing the need for extensive working capital.
- Global Trade Facilitation – In the realm of international commerce, real-time payments break down barriers. Businesses engaged in global trade can now transact with speed and precision, overcoming the limitations associated with traditional cross-border payments.
- Exceeding Expectations – In an era of instant information and connectivity, customers expect their financial transactions to be as fast and convenient as other online activities. Real-time payments meet this demand for immediacy, providing a more efficient and responsive financial experience for you.
By now, it’s clear to see these technologies are reshaping the landscape of financial transactions, offering a myriad of advantages for both businesses and individuals – and Waterford customers can access many of these benefits today.
Fast Payments at Waterford
So, how does this work at Waterford? We offer several services that can get your money moving in a flash.
First, let’s look at Automated Clearing House Origination, also known as “ACH” payments. This type of payment refers to the process of initiating electronic fund transfers between bank accounts through the ACH network. ACH transactions can include various types of payments, such as direct deposits, bill payments, business-to-business transactions, and more.
The speed of this payment can vary depending on the type of transaction, but typically ACH transactions in the U.S. can be sent as Three-Day ACH, Next-Day ACH, or Same-Day ACH.
The next type of rapid payment transaction is wire transfer services. This service is a fast, reliable, and secure way to collect or disburse funds in the United States or internationally.
With a wire transfer, no cash or checks are exchanged. Domestic or international Wire Transfers can be initiated or scheduled for a future date using Business Online Banking. Note, that while you can initiate this service 24/7, wires will only send during scheduled business hours. If initiating within scheduled business hours, payments can be sent same-day.
FedNow is a new service to send and receive real-time payments built by the Federal Reserve to help make everyday payments fast and convenient in the U.S. FedNow will support real-time, 24/7/365 payment and settlement capabilities, allowing individuals and businesses to send and receive funds instantly.
Please note, Waterford can now receive payments via FedNow and is scheduled to gain domestic send capabilities on FedNow’s Network by the end of 2024.
The Future of Finance
As real-time payments continue to gain momentum, speed, efficiency, and global connectivity are no longer aspirations but realities shaping the future of finance. The integration of these systems into everyday life is becoming more prevalent, and businesses that embrace this change are poised for a competitive edge.
Harnessing the power of fast payments can help accelerate your success – improving cash flow and enhancing customer satisfaction.
If you’re looking to enhance the way you do business or simply have a question, we’re here to help! Our team brings decades of experience to the table – that you can rely on to deliver financial peace of mind.
About the Author
Angie Logan is a Vice President of our robust Treasury Management department in Troy, Michigan. On the job, she is passionate about providing exceptional customer service and enjoys the relationships she has made with business customers and her community for over two decades.
She has served the Clarkston area for over 24 years through initiatives in the local Chamber. Recently, she moved to our Troy Office and is eager to bring the same energy to her new role. Angie always has a fresh pot of coffee on and is ready to connect!
If you’d like to connect with Angie or learn more about banking basics, please contact us here.