• Sila has partnered with Trice to leverage the company’s safeguards for instant payments.
  • Trice will help Sila’s customers eliminate insufficient funds and unauthorized debit for ACH transactions.
  • Sila combines FedNow and The Clearinghouse’s RTP to allow ACH transactions to be settled in seconds.

There has been some movement in the instant payments world this week. Banking and payment infrastructure-as-a-service company Sila has partnered with instant payments platform Trice.

Under the agreement, Sila will leverage Trice’s built-in safeguards for instant payments. Founded in 2022, Trice offers the ability to eliminate ACH return codes R1 and R5. For those unfamiliar with ACH return codes, R1 typically refers to “insufficient funds,” while R5 refers to “unauthorized debit to consumer account using corporate SEC code,” meaning the accountholder did not authorize the transaction. By eliminating these return codes, Trice will help Sila lower costs, reduce losses, decrease fines, and ultimately improve the customer experience.

“This partnership reflects our dedication to simplifying financial transactions and making money movement more accessible, reliable, and cost-effective for businesses of all sizes,” said Sila Co-Founder and Chief Strategy Officer Shamir Karkal. “Trice’s innovative instant payment solutions align perfectly with our mission, and together, we aim to set new industry standards for secure and efficient money transfer services.”

Oregon-based Sila launched its ACHNow product in 2018. The tool combines The Clearing House’s RTP, the U.S. Federal Government’s FedNow, and Sila’s own instant settlement product that allows all ACH transactions to be settled in seconds. When businesses submit a standard NACHA file, ACHNow routes each transaction to either RTP or FedNow. In the event the transaction cannot be routed on either of those rails, Sila uses its own instant settlement product to clear the transaction. 

“With new faster payment systems becoming available, Sila is currently in a great position to create excellent payment experiences to surprise and delight their customers,” said Trice Co-Founder and CEO Doug Yeager. “Together with Sila, we’re excited to bring these groundbreaking solutions to businesses and financial institutions, further enhancing the financial ecosystem with the promise of smarter, faster, and more secure money movement.”

Photo by Djim Loic on Unsplash

The post Sila Teams Up with Trice to Enhance Real Time Payments appeared first on Finovate.

Source: https://finovate.com/sila-teams-up-with-trice-to-enhance-real-time-payments/