Remove IRS Remove ODFI Remove Treasury
article thumbnail

As Federal Checks Disappear, Banks Face Surge in ACH Payments and Rising Fraud Risks

Finextra

About half of all federal checks by volume are for IRS tax refunds, with the rest primarily used for federal benefit payments such as Social Security and income support programs. In fiscal year 2023, approximately 96.45% of Treasury disbursements were made via electronic funds transfer, or EFT, compared to just 3.55% by paper check.

ACH 52
article thumbnail

ACH Payment vs Wire Transfer: What’s the Difference and Which Payment Method Should You Use?

Stax

ODFI submits ACH file – The originator’s bank or payment processor, also known as the originating depository financial institution (ODFI) submits the ACH entry containing the payment details. Government payments – You can use ACH to pay individual and business taxes to the IRS.