E-commerce payments outfit Vesta has joined forces with fintech firm Plaid to introduce a payment solution for online automated clearing house (ACH) payments.
Dubbed Guaranteed ACH, the offering is said to lower fraud and fees incurred from nonsufficient funds.
The solution will enable one to start an online transaction leveraging Plaid’s technology to streamline account authentication.
The real-time decisioning platform of Vesta will offer the analytics and authentication to guarantee the payment in real time for consumers and merchants.
Vesta CEO Ron Hynes said: “Despite the benefits, online merchants have been hesitant to embrace real-time ACH because of the underlying fear of being paid. Until now, there has been no way to know whether a user’s account contains sufficient funds at the time of purchase.
“Guaranteed ACH allows businesses to accept direct payments without fear, eliminating one of the major hurdles to ACH acceptance and real-time payments, while also ensuring that millions of Americans with bank accounts but no payment cards have the ability to shop online.”
Vesta said that it will help online merchants boost their profitability and reach new customers reluctant to use payment cards by offering its zero-risk, zero-liability payment guarantee to ACH payments.
Notably, Vesta was acquired by private equity firm Goldfinch Partners earlier this year.
Under the agreement, Goldfinch invested $125m in the acquired entity.