Plaid and Square Announce Partnership to Provide Better ACH Payment Experience

US-based FinTech company Plaid has announced partnering with Square to give merchants in the US a better experience regarding ACH payments，a type of electronic bank-to-bank payment in the US.

​For many ecommerce businesses, ACH payments debited directly from bank accounts provide a lower-cost, more accessible alternative to credit cards. And while cards expire and go missing, account and routing numbers used for ACH payments are more permanent, leaving less room for interruption and error. 

iFX EXPO Dubai Special Coverage at Fazzaco — Discover 70+ Exhibitors' Interviews​

Through the partnership, Square uses a tokenized check system that uses Plaid to allow customers to securely connect their bank accounts for bank payments. This verification option allows customers to quickly enter their bank login credentials to connect an account to enable payments.

According to the official announcement of Plaid, the fintech company desaid,"we partnered with Square so merchants in the US can easily process ACH debits without needing to hold sensitive bank information. Now merchants can accept ACH payments through Square Invoices and developers can enable ACH payments through Square Web Payments SDK, without worrying about bank authentication or any managed payment complexities."

Commenting on the partnership, Dennis Jarosch, Head of Payment Platform at Square said, "Payment flexibility, security, and transparency are core to Square's Payment Platform. By offering ACH payments, we can help businesses process large transactions online at a low cost without worrying about bank authentication, compliance, or any managed payment complexities. We're excited to offer ACH as one of many ways that businesses get paid fast and securely with Square."