ACH payments go through clearinghouses that enforce strict regulations, making it a secure payment method. ACH also typically offers lower fees because it's all digital and eliminates many of the processing fees associated with cards or checks.
ACH transactions tend to carry lower fees, which adds up to considerable cost savings over time. For example, if a customer makes an ACH payment through PaySimple, it might cost $0.60 + . 1% per transaction.
Payments with a debit card are taken instantly from your checking account and shopping online comes with the added risk that your information may be stolen. Using a debit card opens up the possibility that the thief will gain access to the funds in your checking account.
It provides an extra layer of protection, allowing you to make payments without directly exposing your bank account or card details to the merchant. However, bank transfers, especially when done through secure banking systems, are also generally safe.
Security and Fraud Protection
ACH payments are more secure than card payments. A clearinghouse must clear all ACH transactions, and they typically have uncompromising regulations. All account numbers stay confidential, and ACH transfers go directly from one bank to the next.
Debit and credit cards
Not only are they quick and easy to use, but they offer a relatively high level of security and protection of your private data. If you're using a credit card, you don't actually pay for the goods or services until your credit card bill is due.
By and large, credit cards are easily the most secure and safe payment method to use when you shop online. Credit cards use online security features like encryption and fraud monitoring to keep your accounts and personal information safe.
Because debit cards withdraw money from your checking account, a criminal who gets your account information or PIN could empty your account. For this reason, credit cards are considered safer to use online because funds aren't directly taken out of your accounts.
If you don't have proper security measures in place and the criminal obtains your debit card information, they can use it for fraudulent online or over-the-phone transactions. These types of transactions don't require a PIN or signature, making the criminal's job easier.
A debit card has limit liability if stolen
The faster you act the better. If you report an ATM or debit card missing before someone uses it, the EFTA (Electronic Fund Transfer Act) says you are not responsible for any unauthorized transactions.
Automated Clearing House (ACH) payments are popular because they're low-cost and accessible. But they come with risks, especially for returns. Often the result of fraud or insufficient funds, an ACH return is a rejected or incomplete payment. At scale, returns can eat into profits, counteracting ACH's low cost.
If you initiate a transfer after the scheduled time, you may experience delays. This could result in missing payment deadlines and paying penalty fees. It also means that ACH transfers may not be appropriate for emergency or time-sensitive transactions.
With only one third of a percent of all payments being return, ACH provides a high level of safety by any standard despite rising concerns over cyber security. Of course, that doesn't mean zero risk. While ACH payments tend to be very safe for the payer, the vendor is the one who is often sharing their sensitive info.
Furthermore, debit cards rarely offer the same perks as credit cards. They also offer significantly less consumer protection. While credit cards get a bad reputation for getting people into debt, they can actually work in your favor if you are disciplined about paying them off.
Generally, credit cards are a safer option than debit cards because they provide better protection against fraud. If your debit card or card information falls into the wrong hands, a criminal has direct access to all of the money in your checking account.
What is the least secure payment method? Paying by bank transfer is one of the least secure methods. If you send money from your bank account to the wrong organisation or person, it is very difficult to claim it back from your bank.
Security. If you make a payment with a debit card on a biller's website, chances are the company has built in security and fraud monitoring measures to ensure that your personal and banking information is not compromised. That said, debit card transactions are not as safe as credit card transactions.
While debit cards and cash offer consumers limited benefits, using a credit card can help protect you against purchases that go awry. A credit card is guarded from fraudulent activity and some offer benefits like travel insurance and return protection.
But it now requires banks to flag transactions that are considered risky — including if a customer attempts to send payment to an account that has never had a transaction on the network before. According to Zelle, 99.9% of its transactions between 2022 and 2023 were reported free of fraud or scams.
Credit Card Payment
Credit cards are the most commonly used payment method in eCommerce. Since credit cards are easy and mostly safe to use, the high popularity of using them in online purchases is no surprise.
Use a protected payment method
Don't transfer money direct to anybody – use a verified money transfer or online payment service, or make a transaction using your bank or building society account, which will require the person you're paying to provide their details.