The majority of people have been familiar with cash, checks, and credit cards for a long time, and now, more and more are finding out about Automated Clearing House (ACH) payments. An ACH transaction is the process of electronically moving money from one bank account to another using a unique routing number (similar to what’s found at the bottom of a paper check). Below are 7 reasons why accepting ACH payments can help your business:
- Lower Fees
Typically, ACH transactions have the lowest fees compared to check and credit cards. This is because ACH transactions do not use intermediaries to transfer money, which often leads to higher costs. Instead, the funds are transferred directly from one bank account to another.
ACH transfers save businesses from the hassle of paper invoices, checks, and trips to the bank. With no more need for these time-consuming practices, businesses can use their payroll and accounting staff to accomplish other goals. Meanwhile, your customers will also benefit from the convenience and increased flexibility of payments.
- Set it and Forget it
ACH payments allow you to set up recurring billing for your customers without worry. As long as your customer has authorized the billing schedule, your payment processing program will automatically invoice your customer. Automatic invoicing, payment, and payment tracking makes recurring billing a breeze.
- Preferred Funding
All checking account transactions are not created equal. Each bank may have its own policy on papers checks and electronic transactions, however, in general, banks will process electronic payments first. This means those using ACH for payment processing will have priority, which can your business a competitive edge.
- Faster Processing
Credit card transactions have a higher rate of non-payment, which can hold up funds for days or weeks. In addition, their transactions can be disputed for a wide range of reasons. An ACH transaction means faster processing and quicker access to funds, because ACH transactions can only be disputed for three reasons: if the payment amount wasn’t what was authorized, if it was processed earlier than authorized, or if it wasn’t authorized at all. In addition, if any of these activities happen, you will receive immediate notification, so you don’t have to wonder when you will receive payment.
- Safe and Secure
Identity theft and forgery is a big concern for businesses and consumers. Some customers feel uncomfortable providing their bank account information. However, ACH payment information is encrypted and entered into a secure system. Much like a paper check will use a routing number, so will an ACH payment, but there’s one big difference—due to the nature of paper checks, they pass through more hands and have more opportunities to be left in an unsecure area during processing. Electronic transfers stay secure and encrypted through the entire process.
- Go Green
Utilizing ACH payments means less paper checks, less postage, less invoicing, and less transportation. Less consumption means less waste, and saving resources is not only beneficial to the environment, it is cost-effective for you.
Learn more about how ACH payments can help your businesses by visiting www.ach-pay.com.