ACH stands for Automated Clearing House.
No-one is talking about dismantling ACH = American commerce would freeze without it. E-wallets are only a tiny part of this stream.
THere are literally 1000’s of banking institutions accepting millions of transactions into this system and it’s the life blood of electronic commerce and day to day business.
It’s a system by which customers enter transactions into the banking systems for things such as direct deposit of payroll, business to business payments, as well as eft-pos reconcilliations etc.
No-one can tell when a company deposits into this stream – as when a transaction goes into the mix there is no simple “source code” – or a numberic indicator of the merchant – hence my musings earlier.
For clarification – if a casino was paying people then a batch of transactions are entered – say 100 credits to 100 affiliates plus one debit to the casino account.
Or another application would be a company paying 100 employees, or a shop paying 100 suppliers (etc).
The clearing house checks that the total VALUE of credits in this batch match the total of debits – and then release them into the system.
Once the transactions are released there is no way to identify the “source” other than any descriptors that are used in the “free text” – and these are the lines that typically end up on the customers statement.
AS I say – HOW ?!!!
:popcorn:
I’ll certainly be watching with interest.