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Brief History of ACH

ACH stands for "Automated Clearing House" and was originally developed in 1972, with a nationwide version available by 1978. However, in 1980, the passage of the "Monetary Control Act" led the way to ACH operators being allowed to compete directly with the FED (Federal Reserve Banks) for ACH processing.

SBT Business Technologies began providing ACH services in 1986.

So ACH has been around for quite awhile but it didn't really start to catch on until the late 1990's and early 2000's, as a much more convenient, secure, and cost-effective (pennies on the dollar) means to transfer money. The increasing cost of sorting, transporting, and archiving paper checks is making a big push to handle these transfers electronically. If you compare the costs of wiring funds versus an ACH transaction to do the same exact thing, it's a "no-brainer". This has caused businesses to look for financial institutions that provide ACH origination or ACH import services.

ACH Online vs. Standalone ACH Software

In the early days of ACH processing (and SBT itself), all back-end ACH services were handled by complex systems deployed and maintained on expensive servers with expensive personnel who maintained them. Those systems operated the ACH software, which required frequent updates (due to constant changes in ACH rules and regulations) and were difficult to support. Over the decades, the market began to accept that an "online" (or hosted) ACH solution would be more cost-effective, scalable, and user-friendly.

The one problem was always security. For in-house solutions, support was often carried out by allowing third parties to bypass certain security checks. That was, in and of itself, a major risk to the institution. With online ACH services, the need to allow "remote support" is negated completely. In today's more security-minded world, financial institutions are required to perform significant due diligence when dealing with third parties that may handle sensitive data. This is where trust and secure methods came into play.

SBT fostered the growth of the ACH software market for decades (being founded back in 1986) by powering a majority of the Banker's Banks correspondent banking systems (including ACH) for many years. Later, as support costs grew, SBT decided to focus solely on ACH origination and receiving, and began pioneering the push for online ACH services. Other providers quickly followed by providing online ACH solutions of their own or fully migrating to that model.

In the end, though, the deciding factor often comes down to choosing SBT because of the "trust" earned over decades of successful service and the multiple security methods employed (including triple layer digital authentication and end-to-end encryption; all fancy words for "very secure").

About SBT Business Technologies, Inc.

Our Mission

SBT Business Technologies´ mission is to be a profitable provider of complex ACH software solutions and services that provide strategic value to our financial institution customers and their customers. We will continually communicate with, and learn from our customers, in order to improve our products and services.

Our Experiences

Since 1986, SBT has designed, developed, and supported ACH origination software, Cash Management software, and ultimately Correspondent Banking software servicing nearly 3,500 financial institutions nationwide daily. Although some of our competitors claim to have produced the first ACH Origination software for Windows, we first introduced our Windows ACH origination software in 1991. The bottom line is, we know ACH and have in-depth knowledge and experience from years of working closely with our financial institution customers and their customers. We learn from our customers about how they use our software and this vast customer base has provided many software enhancement suggestions that have been implemented to improve the useability of our systems.

Cutting Edge Technology

Recognized as an innovator and market leader, SBT Business Technologies delivers state of the art software for back office systems. As new technologies and customer needs present themselves, SBT evaluates each one for possible new products and services. Our servers employ state-of-the-art 256-bit encrpytion and require each user to have a valid and current digital certifcate. No certificate, no access. It's that simple.

Our Team

SBT Business Technologies has been streamlined over the decades to require very little in the way of support or development. This allowed SBT to scale back during the economic downturn and further streamline its own profitability while building upon its core infrastructure. As a result, SBT has strengthened its offerings and is prepared for the inevitable and continued growth of ACH, as companies continue to look for ways to cut costs and financial institutions seek ways to earn sigificant revenue while helping them cut those costs.

Quality Control

SBT Business Technologies recognizes the importance of dependable and secure network systems. To that end, we have made it our priority to deliver reliable tools that enable you to conduct business without any reservations. All of our products undergo on-going testing to ensure security, functionality and overall quality.

Customer Support

At SBT Business Technologies, we value our customer relationships and realize that they are the key ingredients to our success. Through our occasional follow-up with customers, we are thrilled to hear that "ease of use" and "customer support" are at the top of our feedback list.


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