{"id":15123,"date":"2026-04-27T09:52:33","date_gmt":"2026-04-27T16:52:33","guid":{"rendered":"https:\/\/intuitblog.com\/?p=15123"},"modified":"2026-04-27T09:52:33","modified_gmt":"2026-04-27T16:52:33","slug":"faster-payments-small-businesses-pace-act","status":"publish","type":"post","link":"https:\/\/www.intuit.com\/blog\/innovative-thinking\/small-business\/faster-payments-small-businesses-pace-act\/","title":{"rendered":"Affordability on Main Street begins with faster payments"},"content":{"rendered":"\n

When money moves slowly for small businesses, the consequences are immediate: tighter cash flow, higher costs, and fewer opportunities to grow. American small businesses closed 2025<\/a> with a small late-year increase in hiring, but employment still declined overall compared to the previous year. 2025 also marked the fourth consecutive year of declining revenues for businesses with 1-9 employees. On average, revenue fell by $21,270 per business (-3.46%), signaling that business owners are operating with less cushion. <\/p>\n\n\n\n

Reducing payment settlement delays is one of the most direct ways to lower everyday operating costs for Main Street<\/strong> <\/h2>\n\n\n\n

To do so, Congress can take the practical step of passing the newly introduced Payments Access & Consumer Efficiency (PACE) Act, that would expand payments-only access to Federal Reserve payment rails for qualified, well-regulated, payments-focused companies.<\/p>\n\n\n\n

In an economy where costs still feel high, an outdated payments system shouldn\u2019t be another costly headwind. When funds take days to become available after a customer pays, owners are too often forced into short-term financing decisions that impact their bottom line and can result in late fees, unnecessary borrowing, and delayed decisions on payroll and paying their suppliers. <\/p>\n\n\n\n

The current payments system is outdated and holding consumers and businesses back\u00a0<\/strong><\/h2>\n\n\n\n

Though the way we pay has evolved and financial technology companies are a substantial part of the financial services ecosystem, traditional depository institutions have been the only organizations allowed to access Federal Reserve payment systems for decades. This means all other non-bank payment service providers, including financial technology companies that process trillions of dollars in transactions annually, still navigate layers of intermediaries. This can add costs, cause delays, and concentrate control in the hands of a few traditional depository institutions. For example, just two banks originate approximately 50% of all US ACH transactions<\/a>, leaving little incentive to modernize. When additional qualified providers can connect directly, pricing becomes more competitive and businesses face fewer fees and markups that have traditionally been baked into processing. <\/p>\n\n\n\n

An updated payments framework that broadens access to responsible payment processors would increase competition in financial services and lower costs for businesses<\/strong><\/h2>\n\n\n\n

Americans agree it\u2019s time for a change. In a national survey, 71% of adults expressed that more competition in payment services is important, and 67% support trusted technology companies to directly handle payments if it means their money could move faster, with fewer fees and delays.1<\/sup><\/p>\n\n\n\n

Slow settlement times are a hidden tax\u00a0<\/strong><\/h2>\n\n\n\n

When money is in transit, businesses can\u2019t use it to pay employees, restock inventory, or pay bills on time. Predictable cash flow for businesses can be achieved through payments modernization. <\/p>\n\n\n\n

When funds move faster, owners don\u2019t need to use as many expensive bridging strategies. Currently, 49% of small business owners say<\/a> standard processing times create critical or moderate cash-flow gaps while they wait for payments to clear. Those delays cause business owners to make sacrifices that can be painfully personal.<\/p>\n\n\n\n

Intuit\u2019s 2026 Business Owner Survey<\/a> found that, in the past year, processing delays caused: <\/p>\n\n\n\n