ACH Payroll Processing & Fedwire Blog

ACH Payroll Processing & Fedwire Blog

Third-Party ACH Processors vs. Your Bank: A Whitepaper

Friday, June 08, 2018
Third-Party ACH Processors vs. Your Bank: A Whitepaper

With more than 5.7 billion ACH transactions consummated in the first quarter of 2018, including a dramatic jump in same-day ACH transactions, payroll providers may want to consider their options for obtaining secure, reliable and cost-effective ACH processing services.

The numbers were reported by NACHA – The Electronic Payments Association, which administers the ACH network.

The association reported increases in every major transaction type, from B2B to direct deposit payroll to internet and person to person transfers. Same-day ACH transactions, which entered a third phase of implementation in March, grew by 220% over the same period in 2017. As same-day ACH capabilities continue to evolve, with expanding time limits, dollar limits and even greater speed, growth in demand is expected to continue.

ACH Processing Convenience, Cost, Expertise & Security

For payroll providers, keeping up means finding an ACH processing partner that is a good fit for the needs of their business and their clients. But it's not a decision that should be undertaken without a thorough consideration of the drawbacks and benefits of the options. Convenience, cost, expertise and security are among the factors to compare when deciding between the all-in-one-place convenience of using a generalist like a bank, or obtaining the services of a third-party ACH specialist like Cachet.

At Cachet, we process $150 billion annually in ACH transactions for more than 110,000 employers. Our management team has been a part of the payroll and payroll tax industries since 1969 and we are part of a network of companies with expertise in every aspect of employee compensation, from payroll taxes to time and attendance. We are well positioned to provide the expertise needed to guide your decision around ACH processing providers, even if the choice of a third-party processor is not for you.

Whitepaper Highlights

The choice of an ACH processing partner in an era of rapidly moving money and still-expanding processing capabilities is not an easy one. But we can help. Our whitepaper, Third-Party ACH Payroll Processors vs. Banks, outlines the key considerations underlying the choice of an ACH processor. It includes a framework that will help you choose an ACH processing partner you can rely on now, and continue to rely on as your business grows.

Highlights of this whitepaper include:

  • Differences in Processing Hours
  • Cost Differences
  • Differences in Payroll Reconciliation Practices
  • Security Considerations
  • Auditing Requirements
  • Customer Exclusion policies
  • Limits on Payroll Size
  • Payroll and HCM Software Partnerships
  • Expertise

Download the Third-Party ACH Payroll Processor vs. Banks whitepaper


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