In the day and age of increased cyber security concerns, the hesitation around utilizing ACH payments for rent debit or deposit is understood. It might be a surprise to hear, but electronic fund transfer is one of the safest ways to make a payment! Let’s take a closer look at what an ACH payment is and why it’s completely safe to use.
What is an ACH Payment?
An ACH payment is also known as direct deposit or direct debit. It’s an electronic transfer of funds from one bank account, directly to another, which uses the intermediary service of the Automated Clearing House network. Do you have a job that pays you via direct deposit? Do you pay bills online? Do you transfer funds from one bank to another? These are ways you are already using ACH payments in your everyday life. Paying rent or receiving rent through the ACH is the same thing!
How It Benefits You
- With scheduled payments, it’s a hassle free and safe way to ensure your rent makes it on time, every month. You’ll never have to pay a late fee!
- You’ll never have to worry about having a supply of checks, envelopes or stamps.
- Your electronic transfer will never get lost in the mail, or stolen.
- It makes bookkeeping very easy.
How It Benefits Us
- We never have to wait for the mail or worry about the hassle of lost or stolen payment.
- Although it does still cost money per transaction, it’s less expensive than processing credit cards.
- We can accept ACH payments remotely, which is not always the case with plastic.
Should I Be Worried About Fraud with ACH Payments?
The short answer to this is no! We turn to the Changes in Fraud U.S. Payments Fraud Survey from 2016-2018 by the Federal Reserve which concludes that:
- ACH payments had the lowest fraud rate, by value, among the payment types, remaining flat at 0.08 basis points in 2012 and 2015. (8 basis points is 8 cents for every $10,000)
- Payments providers have increasingly introduced technological innovations to mitigate fraud or to add convenience, security, and other potential improvements to the payment experience.
- The findings show that, while vulnerabilities exist—and specific experiences are likely to vary substantially from the overall picture—the U.S. payments system, in the aggregate, is resilient and responsive with respect to payments fraud vulnerabilities
Although the concern for security is entirely valid, even the Federal Reserve would agree with us when we say, ACH debits and credits are the safest way to pay or collect rent. If you have any further questions over how the ACH payments work, please get in contact with us!
Looking for something?
Visit our Tenant Resource Center to submit a work order. Visit our Client Resource Center to log into your account. Check out our awesome DMV located rentals. Get in touch for our property management services.