Quote:
Originally Posted by baodb
I am not familiar with whatever weird payment shit is happening in the USA but in EU many merchants make good money with SEPA direct debit and manual SEPA transfers. Why exactly can't that be done with ACH to stick it to the credit card companies?
|
Back in the day sites had "Pay By Check" option which was basically an ACH authorize, the user enters their routing and account number. There was no way to actually verify funds and it was an unreliable way to charge people. One benefit was the account details never expired like credit cards do, so good members did rebill for longer.
The only way to verify funds exist would be to use one of the many consumer layers on top of the bank system (Venmo, Zelle, Cashapp), which don't allow adult or support recurring billing. They also all lean on credit card processing too. ACH is 70 years old and was not meant for ecommerce or quick, easy, secure payments.