You know what’s surprising? The fact that paper checks are still so commonplace despite how accessible electronic payments are.

According to the Remittance Coalition’s B2B Director Concept Paper, nearly 15 billion checks were written in 2018, a 7% decrease from 2015. Given the popularity of payment methods like credit and debit cards, along with ACH, push-to-debit and real-time payments, businesses have faster payment processing options that can help drive efficiency across various business processes.

In a world where a jar of peanut butter can be delivered in a few hours, businesses are still spending time collecting and depositing checks for a significant number of payments.

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Case Study: ACH Saves Embrace Pet Insurance 92% in Costs

With tens of thousands of reimbursements going out each month, Embrace Pet Insurance offers “nose to tail” coverage through customizable accident and illness insurance plans for dog and cat owners to keep their furry family members healthy and protected.

After visiting a veterinarian, specialist or emergency clinic, policyholders can submit their claim by email, mail, fax or by direct upload through the mobile application. Once a claim is approved for reimbursement, this triggers someone from Embrace Pet Insurance to process the reimbursement the customer’s choice of either a paper check or direct deposit via ACH transfer.

Prior to working with Dwolla, the previous method for processing reimbursements via direct deposit took nearly four hours each day, in addition to processing paper checks. Claims approved for reimbursement in the early afternoon would not be processed for payment until the next business day—at the earliest—because Embrace team members were needing to spend time on other aspects of their jobs.

Since integrating with Dwolla in 2017, Embrace Pet Insurance has been able to offer its customers reimbursements directly to a bank account with an ACH transfer in an easy, secure manner. Today, almost half of their total reimbursements are issued via an electronic ACH payment. Policyholders are being reimbursed five days faster compared to using a check—which takes nearly a week to receive after being issued—and the company is saving thousands of dollars each month.

Finding a Use Case For Real-Time Payments

A real-time payment is an instant bank transfer. When a business initiates a real-time payment, funds will instantly move from the sending bank account to the receiving account, through the RTP® Network.

Not all banks currently participate in the RTP® Network. Banks must agree with The Clearing House to participate in the RTP® Network. Participating financial institutions include some of the largest banks in the United States. View the full list of participating financial institutions here.

The Clearing House owns and operates the RTP® Network. The RTP® Network is built on a credits-only good funds model, where senders must validate they have funds to send before payments can be initiated.

Comparing the cost of an ACH or RTP transaction to a check, electronic bank transfers are competitively priced—regardless of the size of the transaction.


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