Are ACH Payments Risk-Free?

Jun 1, 2022 | ACH

Zil Money is a financial technology company, not a bank or an FDIC member. Zil Money offers banking services through partnership with FDIC member banks Silicon Valley Bank and Texas National Bank.

ACH, Automated Clearing House, has revolutionized the banking industry. It has simplified the lives of small businesses. ACH is widely accepted because it’s secure and costs less; moreover, at Zil Money, ACH payment processing is free. Compared to paper checks, this mode of payment is much simpler and safer. The dollar limit for same-day ACH is increased to $1 million from March 2022.

How Does ACH Payment Processing Work?

First of all, at Zil Money, you need to provide your name, routing number, account number, account type, and transaction amount to make a transaction. The transaction is usually processed either on the same day or in one or two business days.

Pros and Cons of ACH Payments

Like a coin has two sides, the ACH payment mode also has merit and demerits. Coming to the pros of ACH payments.

Saves Time

Ahead of time, ACH payments are scheduled. As a result, businesses spend less time writing, sending, and tracking checks. Additionally, vendor details only need to be entered once. Zil Money helps you make recurring payments easier and faster.


ACH payments are cost-effective compared to credit card payments, wire transfers, and checks. To write a check, you need to spend $4 – $20 while the average internal cost to receive ACH payments is $0.29, and the cost decreases with higher transaction volumes. Instead, at Zil Money, the ACH payment processing is free.


ACH payments pass through the clearinghouse, which enforces standard rules and regulations when account numbers are kept confidential. With paper checks, there are high chances of loss or theft. Since the check carries the account details, forgery is also possible. Under these circumstances, ACH payments are highly secure, and if, by chance, any fraud or error happens, The Electronic Fund Transfer Act ACH gives 60 days to recover the funds lost.

Unique PUN

A unique Payer Unit Number (PUN) is created to process ACH payments. The details are not stored online. The broker can use the PUN for only particular statements.

Hassle-Free Expense and Income Tracking

ACH transactions simplify the reconciliation process. Once the transaction is made, the transaction details are collected in a single location, avoiding the hassle of linking paper invoices and checks.

These merits show that the ACH payment mode is the best and risk-free. But are they risk-free? These are some of the risks faced while doing an ACH transaction.

Lengthy Processing Time

Even though the ACH payment method is famous for its minimal time consumption trait, the processing time it takes is more. Since the processing of transactions is done in batches, the process is getting stretched. At Zil Money, we offer you faster and more cost-effective ACH payment processing.

Fraud Risk

The risk from outside forces is less, but insider threats are still prevalent. If the bank employees have your account details, it’s easy for them to misuse those details and make unauthorized transactions. By placing multiple screeners and assuring the integrity of the employees, your data is safe with Zil Money.

Operational Risk

Power or computer failures or natural calamities are some of the unpredictable operational risks. If the details are not safeguarded, there are possibilities of duplication or loss of data.

Credit and Debit Risk

If you don’t have a sufficient balance, the payment will not be processed. Also, if your details get into unauthorized hands, then both you and your financial institutions will incur a loss.

Systemic Risk

These risks show up in case of bankruptcies and financial difficulties phase. If you don’t have an adequate balance, then the transaction will not be processed, and as a result, the recipient won’t be able to settle their account, causing a chain reaction.

ACH Payments with Zil Money

ACH payment processing is now free with Zil Money. You can make online ACH payments one time or recurring using Zil Money. Log in to our platform and add your bank account for free and Pay and Get paid by ACH transfers. Businesses can make or accept ACH payments anytime through computers, tablets, or smartphones with our ACH payment processor.

Again if you feel like it’s taking longer to do an ACH transaction, you can go to other payment modes by Zil Money like credit cards, eChecks, or checks by SMS.

Get in Touch

(408) 775-7720

Make a call directly with our customer support team to make it instantly.

Mail to us to solve any queries you have with Zil Money.

111 N Market St, San Jose, CA 95113

Po Box 6543, Tyler TX 75711

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