GreenBox said it saw the challenges in managing cash flow faced by clients during the coronavirus pandemic. Usually, an ACH payment issued before the day’s 6 p.m. cutoff time takes until the next day to go through. But clients using GreenBox’s Same Day ACH platform will be able to access their money right away if the money is requested before 11 a.m. Eastern Standard Time.
The service is fully automated and part of GreenBox’s proprietary blockchain technology platform.
The company said the service will be particularly helpful during the pandemic, which has disrupted normal business and left many companies scrambling for funds. Due to losses in revenues, faster payments can make huge differences for companies trying to keep their finances in order.
With the quicker payment turnaround, businesses will likely be able to pay suppliers and better manage cash flow.
Ben Errez, executive vice president and chairman for GreenBox, said approved GreenBox clients will now be able to “request funds from their account in the morning and see it land in their bank account that same day, hours later.”
Errez said the company’s goals are to continue making payments infrastructures faster and more streamlined in line with businesses’ needs.
ACH has been a thorn in the side of making changes to payroll for years due to its time-consuming nature, but it is finally starting to become less of an issue due to Same Day ACH platforms like GreenBox’s.
And although the service isn’t universal for the U.S. yet, the trend is catching on, with innovators working on more cloud-based payment services to challenge the traditional norms of how payments flow.
NACHA, the ACH payments and financial data hub, reported that Same Day ACH transactions on the ACH Network had increased 39 percent in the fourth quarter of last year, hitting 71.3 million payments.