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Over the last few years, some banks involved in electronic data interchange (EDI) have created a new EDI payment resource to meet needs not being met by traditional automated clearinghouse (ACH) payment networks. The new resource-EDIBANX-is a nonprofit network owned by participating banks and operated by the Chicago Clearinghouse Association. EDIBANX is a banking industry solution that may correct several shortcomings inherent in doing business with ACH payment networks and could become a resource that helps providers implement financial EDI.
ACH payment networks are attractive because all banks can accept ACH payments, and origination and receipt cost less than 10 cents per transaction. These features have made ACH a great mechanism for the direct deposit of social security and payroll payments. But a big problem with ACH payment networks is that payers cannot receive confirmation from payees that funds have been received. In addition, payers themselves do not have...