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Have you ever shared your bank account and routing numbers during a transaction? Most business owners have. It’s a common practice, especially with ACH (Automated Clearing House) transactions, where account details are shared to send or receive payments.
ACH is generally considered safer than checks, but sharing your account information can expose your business to serious security risks. This blog will share the risks associated with sharing your bank details and introduce you to a safer alternative—Forwardly.
Why do businesses still rely on ACH if it’s risky?
ACH transactions are popular because they’re fast (but still a lot behind our instant payments), convenient, and cost-effective compared to traditional payment methods like checks. But while ACH may be more secure than mailing checks, businesses still face potential fraud risks when they share sensitive account information.
In an ACH transaction, your bank account and routing number are used to facilitate payments, and these details are often passed between multiple parties. While ACH itself is secure, the problem arises from the exposure of your bank details to others. Once someone has access to your account number and routing number, they could potentially misuse that information to withdraw funds without authorization. It’s more like leaving your front door open in a safe neighbourhood—just because it’s generally secure doesn’t mean there aren’t risks.
Why is sharing your bank account details risky?
The act of sharing your bank account and routing number may seem harmless, but it’s actually a bit like handing out the keys to your financial kingdom. Here’s why:
- Vulnerability to fraud: When you share your bank account details, you’re providing fraudsters with the information they need to initiate unauthorized withdrawals. If those details fall into the wrong hands, you could be at risk of losing significant amounts of money.
- Limited recourse: Unlike credit card fraud, where unauthorized transactions can be quickly disputed and reversed, ACH fraud can be harder to deal with. Once an ACH transaction is initiated, reversing it is more complicated and can take longer. This could cause disruptions to your cash flow and even hurt your business relationships.
- Potential for long-term damage: Even if fraud doesn’t happen immediately, having your sensitive information out there creates an ongoing risk. The more times you share your details, the more vulnerable your business becomes over time.
The rise of ACH fraud: What you need to know
Did you know that 37% of organizations report being targeted by ACH fraud? While ACH transactions are generally secure, they’ve become a target for fraudsters due to the sensitive account information involved. Between 2021 and 2023, ACH fraud saw a worrying increase of 6%, showing just how much the threat has grown.
So, how do these fraudsters operate? They use various tactics to exploit businesses, such as phishing schemes, social engineering, or simply stealing information from unsecured sources. Once they have access to your bank details, they can initiate unauthorized transactions, causing financial strain and reputational damage.
This growing problem highlights the need for businesses to rethink how they handle ACH transactions. If you’re still sharing your bank account details during transactions, it’s time to consider a safer way.
How does Forwardly protect your business from ACH fraud?
That’s where Forwardly comes in. Forwardly is designed to help you make fast, secure payments without ever sharing your sensitive bank account or routing numbers. It’s a game-changer for businesses looking to protect themselves from fraud while still enjoying the convenience of ACH-like payments.
So, how does Forwardly work?
- No bank details shared: When you use Forwardly, your bank account and routing numbers are never shared with clients or customers. Instead, Forwardly handles the entire payment process securely, eliminating the risk of someone misusing your account information.
- Instant payments: Forwardly offers instant payments, meaning you can send and receive money in under 60 seconds, securely, and without the wait times associated with traditional ACH transfers.
- Secure payment Authorization: With Forwardly, all payments are authorized using a secure process that doesn’t involve exposing sensitive bank details. This adds an extra layer of protection, ensuring that only authorized transactions are processed.
- Real-time notifications: Forwardly provides real-time notifications for all payments, so you always know when a payment has been sent or received. This helps you stay on top of your cash flow and detect any potential issues right away.
- Cost-effective: Forwardly’s payment system doesn’t just protect your business—it also helps you save money. There are no monthly fees, and Forwardly offers same-day ACH transfers at no extra cost, which can help you reduce payment processing fees. Receiving instant payments only costs a 1% fee capped at $10.
Ready to protect your account info?
Why take unnecessary risks when you can switch to a safer payment option with Forwardly? Protect your business from ACH fraud and keep your bank details secure with Forwardly’s hassle-free payment process.
Ready to make the change? Discover how Forwardly can keep your business safe and secure while simplifying your payment process. Click here to learn more and get started today!
