SAN FRANCISCO—Fintech Plaid has announced it is partnering with Square in what the companies said is an effort to help businesses easily process ACH debits without needing to hold sensitive bank information.
“For many e-commerce businesses, ACH payments debited directly from bank accounts provide a lower-cost, more accessible alternative to credit cards,” said IBS Intelligence. “Now, with this announcement, merchants can accept ACH payments through Square Invoices and developers can enable ACH payments through Square Web Payments SDK, without handling bank authentication or any managed payment complexities.”
According to the report, under the collaboration, Square uses a tokenized check system that uses Plaid to allow customers to securely connect their bank accounts for bank payments. This verification option allows customers to quickly enter their bank login credentials to connect an account to enable payments.
The ‘Core’ Benefit
“Payment flexibility, security, and transparency are core to Square’s Payment Platform,” said Dennis Jarosch, head of payment platform at Square. “By offering ACH payments, we can help businesses process large transactions online at a low cost without worrying about bank authentication, compliance, or any managed payment complexities. We’re excited to offer ACH as one of many ways that businesses get paid fast and securely with Square.”