In the digital age, businesses are increasingly moving away from traditional payment methods such as checks and cash, and adopting electronic payment methods for B2B transactions. Electronic payments offer numerous advantages over traditional payment methods, making them an ideal choice for businesses looking to streamline their payment processes and improve cash flow. What are the benefits of electronic payments for B2B transactions? Faster payment processing Electronic payments are processed much faster than traditional payment methods. With electronic payments, the payment is transferred directly from the payer's bank account to the payee's account, eliminating the need for physical checks or cash. This significantly reduces payment processing time, allowing businesses to receive payments faster and improve cash flow. Increased convenience Electronic payments offer increased convenience for both the payer and the payee. With electronic payments, businesses can make and recei...
ACH credit transactions are used everyday for any number of reasons. Whether its dividend payments from your broker or your monthly social security check ACH credit transactions are an important part of the ACH network. ACH Credits Usage ACH eCheck transactions happen when the Originator (usually a company) starts a transfer to move funds to a Receiver's (consumer) account. There are a number of reasons to perform an ACH Credit transaction. dividend payments b2b payments interest payments annuities disbursements telephone bill initiated payments pension tax payments refunds Social Security payments payroll government vendor payments Here is an example. You have a brokerage account at Bank of America and you own 1000 shares of Microsoft. As of this writing Microsoft pays a dividend. If your set up to be payed the dividend, you the Receiver would receive the dividend as an ACH credit to your account from Bank of America, the Originator.