As consumer-facing technology continues to evolve, financial institutions and businesses are constantly finding new opportunities to update alternative credit
options and debt collection
practices to keep with the times. One area that has seen substantial refinement is Automated Clearing House (ACH) Payments.
ACH payments are very similar to those made by debit and credit cards, though are often viewed by financial institutions and enterprises as bearing a lower risk. Wise Geek reports that the bulk of these payments are processed through the Federal Reserve, as well as the Electronic Payments Network, and include facets like direct deposit payroll. CSPnet.com recently reported that decoupled debit is making a big showing in the ACH arena, especially in light of the mobile wallet. According to the news provider, the National Payment Card Association recently obtained a new patent for its decoupled debit technology, something it intends on helping create a more efficient payment processing landscape. Part of the patent refers to the ability of the the technology to expand the capabilities of ACH payment methods into mobile devices, the source noted. This can be viewed as similar to a payment token, as it will not necessarily be linked with the holder's checking or savings account. Additionally, many view the payment token process, popular in Europe, to be more secure than traditional card swipes.