The development of the ACH system helps in improving productivity over which traditional transaction method?

The correct answer is paper check transactions because the ACH (Automated Clearing House) system significantly streamlines the transaction process compared to traditional paper checks. Unlike paper checks, which require physical handling, mailing, and manual processing, ACH transactions are electronic and can be initiated quickly and easily. This process reduces the time needed to clear payments, minimizes the risk of lost checks, and decreases the administrative burden associated with paper form management.

With paper checks, there are delays linked to delivery times and the need for physical bank visits for deposits, whereas ACH facilitates same-day or next-day transactions, enhancing efficiency for both consumers and businesses. Furthermore, the move to electronic payments through ACH also aids in reducing costs related to check printing and processing, making it a more productive method for conducting transactions. In summary, ACH transactions improve productivity by eliminating the cumbersome steps associated with paper checks and providing a quicker, more efficient way to handle payments.