Summer is heating up, particularly when it comes to innovating payments. In this week's issue, DepositLink, Inc., a Boston-based provider of payment solutions to real-estate firms announced that RealitySouth, a real-estate firm in Alabama, will deploy a custom payment management system to move payments received by its agents. Meanwhile, financial institutions taking steps to further reduce the population of unbanked and underbanked individuals may find real-time payments are the solution they've been looking for. Also in the news this week, Nacha's new rule, limiting the timeframe a Receiving Depository Financial Institution (RDFI) can make a claim against the originating institution's authorization warranty, went into effect on June 30.
Read on to learn more about this week's stories:
1. Eye On Payments for Professions: New Initiatives From DepositLink, LawPay, And Repay (Digital Transactions)
With the Covid-19 pandemic accelerating the adoption of digital payments, it was only a matter of time before payments providers began pushing the technology beyond mainstream merchants, such as retailers and restaurants, and down to professions with specialized needs, such as realtors, attorneys, and healthcare providers. DepositLink Inc., a Boston-based provider of payment solutions to real-estate firms, on Wednesday announced that RealtySouth, the largest real estate firm in Alabama, will deploy a custom payment management system to move payments received by its agents, such as earnest money, from a payment queue and in select batch amounts, to multiple bank accounts using the DepositLink platform. Read more.
2. Real-Time Payments Help Underbanked Find Financial Relief (PYMNTS)
One of the lesser-known troubles of the modern economy is the prevalence of unbanked and underbanked individuals. Unbanked individuals lack access to bank accounts while underbanked individuals have bank accounts but rely on alternative non-bank financial services to meet at least some of their financial needs. There are currently 7 million households in the United States that are considered unbanked, and the lack of access to banking services means that these households must cash their paychecks via check-cashing services and pay bills using money orders, for example, both of which can charge exorbitant fees and drive unbanked families further into poverty. Read more.
3. New Limit Imposed on Automated Clearing House Payment Disputes (CFO Daily News)
Nacha has a new rule that limits the timeframe a Receiving Depository Financial Institution (RDFI) can make a claim against the originating institution's authorization warranty. And it became effective June 30th. You now have one year from the settlement date of the entry to make a claim on entries. That applies to non-consumer accounts. That's a hard-and-fast deadline. Even if you discovered a troublesome transaction from March 2021 (before the new rule kicked in) you still only have a year from that date. Read more.
What do you think about payment solution providers pushing technology beyond mainstream merchants, such as real estate firms? How might this impact your financial institution both now and in the future? What plans does your financial institution have for helping the unbanked and underbanked?
Do you have questions about Nacha's new rule limiting the timeframe an RDFI can make a claim against the originating institution's authorization warranty? NEACH's payments hotline can help. Call 855-NEACHQA for answers to your questions.
AUTHOR: Joe Casali, AAP, NCP
Executive Vice President
As the EVP of Payments Innovation for NEACH, Joe focuses on exploring innovative solutions and technologies that will help position members for success, both now and in the future. Connect with Joe to read more of his blogs, articles, and posts.