How come the big credit card billing companies don't eft?

[IntenseCash.com]

I think this would be great if they did this. Instead of a check which could be lost or take awhile to get or a wire which can be costly every week why don't the processors eft payments?

Thanks,
Mark

[gaybucks_chip]

I've asked that question dozens of times and never gotten a satisfactory answer.

EFT (ACH) payments are nearly fully automated and cost pretty much nothing, while wire transfers are a lot more clunky, time consuming, require paperwork, etc, and costly on both ends. It makes NO SENSE whatsoever.

Maybe if a bunch of us gently accost the right person or persons at CCBill during Phoenix Forum we could convince them otherwise... seems like it would be MUCH easier for them in any case.

[nickbaer]

I sell products thru small providers who pay by ACH, and I sell thru BIG providers who pay by check.

It is such a waste of time and gas to drive 2 miles to Post Office, and another 2 miles to the bank, to get then deposit paper!

Last month, one of my bigger providers bounced its monthly check to me! I called them to be told that a disgruntled former employee stole some checks!

I suggested it was time to look into ACH.

Got a silent answer on that - again!

The only clue I know of that companies issue paper rather than initiate ACH is Float! The paper check process provides for several additional days of higher account balances for them.

[AusCoding Allan]

The main reason for payment by cheque is that is is better for cashflow purposes.

If you are processing many transactions and making a very low margin, often the best way to make money is to earn interest on the money you have received prior to paying it out. Take the following for example:

$10,000 worth of transactions processed per month.

Company A pays every 30 Days by EFT. They earn approx $41.66 interest for the month that that they have your money.

If they pay you by cheque and it takes you only an additional 14 days to receive the cheque in the mail and bank it then they earn an extra $20.00 approx.

This example doesn't include compound the interest either.

This is standard business practice in most large companies.

Cheers,

Allan

[nickbaer]

Well, I have yet to find a Bank here in CA that pays "interest" on my balances, and I am not big enough to play the transfer to savings then back to checking daily float game...

But, yes, the answer to checks vs. EFT lies in daly float, and the ultimate hope that the US Mail will loose the check, or the check will be delayed in the mail, or the bearer will delay in depositing it, or the bearer will go out of business, etc., all of which work to the daily balance favor for the Payee.

[longboardjim]

as many pies as they have their hands in i'm more surprised they haven't started some type of AVS network of their own.
i'm guessing they'd rather charge a "middle-man" the high risk and legal ramifications that go along with the territory?
someone from visa/mastercard here to expand on this?

sincerely ~ ..."save money! , leave home without it!"... :goof: