As real-time payments continue to transform payments, ACH remains a foundational rail for businesses and financial institutions, with growing transaction volume and value. To better understand ACH payment processing today—from security to operational impacts and future trends, we sat down with Praveen Vinnakota, our Senior Vice President and Payments Platform Lead, to discuss the common questions financial institutions have about ACH modernization and how Alacriti’s Orbipay Payments Hub for ACH solution is helping institutions streamline and future-proof their ACH operations.
Q: How quickly are ACH payments processed today?
A: Standard ACH transfers typically settle in one to two business days, while same-day ACH enables faster processing when needed. Although ACH may offer cost advantages in some scenarios, the value of instant payment rails—such as real-time settlement and improved cash flow—can outweigh the cost difference depending on the use case.
Q: What ACH timing considerations should financial institutions keep in mind?
A: There are cut-off times for same-day ACH transactions. Understanding those windows is critical for businesses managing cash flow. Knowing when settlement occurs and when funds are available helps organizations better manage and forecast their liquidity.
Q: What is the best way to secure ACH transactions?
A: Security starts with account validation—making sure the account is legitimate before a transaction is initiated. NACHA compliance is key, as is ongoing risk monitoring to detect anomalies.
Q: What risk management features are typically available in a modern ACH solution?
A: Institutions can monitor credit risk exposure, set transaction limits, and enable return rate monitoring controls. Having strong pre-transaction validation really helps reduce fraud.
Q: How does Alacriti’s Orbipay Payments Hub for ACH integrate with existing systems?
A: Alacriti’s Orbipay Payments Hub for ACH seamlessly integrates with core banking systems and online banking platforms using APIs and/or batch feeds. It also supports automated workflows that simplify processing and reconciliation.
Q: What operational benefits does Orbipay Payments for ACH bring?
A: Orbipay Payments Hub for ACH significantly reduces manual processing compared to checks. Staff time is saved through automation, and reconciliation becomes faster and more accurate. On top of that, the current solutions used are based on legacy mainframe-based solutions that are outdated and were not built to support the scale and volume of transactions FIs are seeing.
Q: How are ACH solutions typically priced?
A: Most ACH processing uses a transaction-based model. Volume discounts may apply, and compared to wire transfers or paper checks, ACH can deliver meaningful cost savings.
Q: What’s required to implement Orbipay Payments Hub for ACH?
A: Technical integration with existing systems is the first step, but it’s usually straightforward, and to date, the solution integrates with most digital banking and OLBs in the market. Training is important for back-office staff, and Alacriti provides strong support for both onboarding and troubleshooting. Alacriti does the heavy lifting to integrate with the FI’s current ecosystem and creates a seamless migration plan to limit disruptions to your ACH operations.
Q: What are the common business applications for ACH?
A: ACH powers payroll, vendor payments, external account transfers, and recurring billing—it’s an incredibly versatile tool for businesses and consumers.
Q: What compliance issues should businesses be aware of?
A: When offering ACH, your financial institution must comply with NACHA rules. Maintaining detailed audit trails and timely reporting are essential for regulatory compliance.
Q: What advanced features are now available with ACH payment platforms?
A: Mobile access, batch processing, real-time notifications, and account validation services are becoming standard. Many platforms also integrate with other payment rails for a more unified experience.
Q: How does ACH modernization impact customer service?
A: Self-service options like initiating payments online or receiving payment notifications directly make the experience smoother for customers or members. It reduces friction and improves satisfaction.
Q: What makes Orbipay Payments Hub for ACH different overall?
A: Our Orbipay Payments Hub for ACH stands out because it’s built around the reality that financial institutions no longer want siloed systems for each payment rail. Instead of managing ACH separately from wires or instant payments, we offer a single, unified platform that handles them all. Institutions can process ACH, the FedNow® Service, the RTP® network, and wire payments through one hub.
Operationally, we extend processing windows, automate file processing and returns handling, and enable configurable straight-through processing. That creates real efficiencies compared to traditional ACH setups, where cut-off times and manual steps create friction. With Orbipay Payments Hub, clients can process later in the day, manage higher transaction volumes, and deliver a better experience to their customers.
ACH is still critical to business, but modernization efforts have to fit into a broader payments strategy. Our solution helps financial institutions enhance ACH today while seamlessly positioning themselves for growth across new rails like instant payments tomorrow—all without re-platforming later. It’s about operational excellence now, and future-proofing for what’s next.
Q: Where does ACH fit into the future of payments?
A: ACH isn’t going away—it’s evolving. Many institutions are looking at hybrid strategies that combine ACH with instant payment rails like RTP and FedNow. The goal is to offer flexibility based on the customer’s need for speed, cost-efficiency, or both.
For more about ACH, read ACH Modernization: Insights from the Experts.
Orbipay Payments Hub for ACH is a modern, automation-first solution that empowers financial institutions to streamline ACH operations, reduce costs, and future-proof their payments infrastructure. With capabilities like end-to-end automation, intelligent exception handling, and seamless integration with other payment rails, Orbipay simplifies ACH processing while enhancing compliance, visibility, and scalability. To speak with an Alacriti payments expert, please contact us at (908) 791-2916 or info@alacriti.com.
