Modern Treasury has added check payments to its unified Payments API. Developers can now originate physical and digital checks through the same API. The new capability expands Modern Treasury’s Payment Service Provider (PSP). Customers can now manage checks alongside several modern payment rails.
These rails include ACH, wire transfers, RTP, FedNow, push-to-card, and stablecoins. Therefore, developers can support different payment needs through one payment infrastructure. Modern Treasury announced the update from San Francisco. The company said the new capability reduces operational complexity for payment teams.
Previously, developers often needed separate check printing vendors. They also maintained different reconciliation workflows for check payments. Now, teams can route payments through one unified system. They can also track different payment types through consistent payment workflows.
As a result, businesses can simplify payment implementation and operational management. They can also reduce the effort required to support different payment methods.
“We have a saying at Modern Treasury: payment rails don’t die. There’s no better example than checks,” said Matt Marcus, Co-Founder and CEO of Modern Treasury.
Checks Remain an Important Payment Rail
Modern Treasury’s PSP was designed on the idea that businesses need more than one payment rail. Different payment methods are needed for different transactions. Vendors, for example, may be paid using RTP. ACH is what payroll teams like for recurring payments, maybe.
Meanwhile, some companies may use stablecoins for cross-border settlements. Checks are still good for other payment needs. The Federal Reserve’s latest data shows 9.2 billion checks are used annually. That is $24.45 trillion in transactions.
Checks are still important in many industries. Insurance companies still use checks to pay claims and settlements. Checks are still used for legal and escrow operations. Construction companies use them for progress billing and the disbursements that go with it. Some real estate businesses also use checks for some payment processes. Healthcare organizations do run checks on certain activities related to reimbursement.
Enterprise accounts payable teams also have check-based payment options. In addition, state laws require checks for certain unclaimed property remittances.
So, it is not always feasible for businesses to do away with check payments from their operations. Modern Treasury’s update aims to modernize checks into today’s payment infrastructure.
Developer Features for New Check Payments
Modern Treasury’s PSP now lets customers choose payment rails based on their needs. Businesses can take into consideration recipient preference, speed, cost and internal rules. Developers are able to create and mail physical checks to recipients. They can even send digital checks on the same payment infrastructure.
Mobile banking or remote capture can be used by recipients to deposit digital checks. You can use this option to help reduce delays with physical mail. Modern Treasury also adds fraud controls on check payments. Automatic stop payments and Positive Pay are available to customers. These controls reduce the need for distinct fraud management workflows. That means companies can control check security in today’s payment environment.
Customers can also personalize physical and digital checks. They can also add logos and attachment pages to keep the trademark. Teams can also handle checks thru the same dashboard. The platform also supports similar ledger and compliance controls.
These capabilities allow businesses to develop payment experiences based on recipient preferences. They can also consider transaction cost and how fast they can deliver.
Single API for Legacy and Modern Payment Rails
The update removes the need for a separate check payment provider. Developers also don’t want to maintain a second api for check transactions. Checks are now another payment rail on Modern Treasury’s platform. Developers are able to perform pick checks in addition to ACH, RTP, FedNow and more. The platform also supports wire transfers and push-to-card. You can still get stablecoins through that same payment infrastructure.
Modern Treasury links these payment options through its API. Orchestration, ledger and reconciliation workflows are also provided. With this infrastructure, the company has processed over $600 billion in payments. Adding checks broadens that infrastructure to another established payment method.
Matt Marcus, Co-Founder and CEO of Modern Treasury, said: “We have a saying at Modern Treasury: payment rails don’t die. There’s no better example than checks. No matter how the industry evolves, platforms still need the flexibility to let their customers pay and get paid in the ways that work best for them,” said Matt Marcus, Co-Founder and CEO of Modern Treasury. “Instant payment rails like RTP, FedNow, push-to-card, and stablecoins are expanding what’s possible, but checks remain essential for millions of recipients. Our job is to ensure customers never have to choose between adopting the newest payment technologies and supporting the rails their business still relies on.”
The update reflects the continuing role of checks within payment infrastructure. At the same time, businesses continue adopting faster digital payment technologies. Modern Treasury’s approach brings both requirements into one platform. Developers can therefore support traditional and emerging payment rails through one integration.
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News Source: Businesswire.com
