Our long-time colleague, John MacAllister at Dorado Industries, just released the latest edition of his Trendwatch. This is a must read for all payments executives. As is customary for him, MacAllister examines the recent activity over the past quarter, looks at M&A activity, and predicts what will happen in the upcoming year.
One interesting editorial is about whether there is a need for ACH Interchange. He makes a compelling point:
So, here’s the point: fraud prevention systems and absolute fraud losses cost real money! And if ad hoc or one-time ACH debit transactions continue to grow at near double-digit rates, we can be sure to see a rise in RDFI and ODFI fraud losses. Isn’t now the time to build in a mechanism that will incent ACH participants through monetization to make the system as bulletproof as possible?
The article is making us do some real thinking on it (hint: stay tuned).
The PDF is not yet posted on Dorado’s website, so until then, here it is:
