There are a variety of ways that businesses can collect payments from customers, but not all methods are equal. For many businesses, ACH is the preferred option; we will tell you why below.
Basics of ACH
ACH Payments are electronic payments where funds are transferred from a customer’s account to your business account, generally over the course of two to three business days. If you are familiar with ‘e-checks’ or monthly recurring billing, you have most likely experienced ACH processing in action.
ACH, or the Automated Clearing House network, handles the logistics of these payment, coordinating the money transfer from one bank to another. Most of this activity is invisible to businesses and consumers.
To accept payments using ACH, businesses need a merchant account that can accept ACH payments; fortunately, most accounts are already capable of doing so. Customers provide their checking account information (account and routing number) and that information is used to make the payment.
Benefits of ACH
Why would a business choose to process payments with ACH? Cost Savings. This is one of the main benefits of using ACH, along with the additional perks that come with using electronic payment methods. Let’s take a look at these positive attributes at hand:
ACH is a relatively inexpensive way to accept payments. Though costs may vary from provider to provider, when compared to credit cards, ACH processing virtually always costs less. This will save you a considerable amount over time.
Easy for Business
Once an ACH payment is set up, there is little to no action required from the business. Customers can even enter their payment information to set up recurring billing, and those monthly payments will continue to come in electronically without additional effort from the business. ACH eliminates the redundant process of opening mail, applying payments to correct account, and depositing checks in the bank month after month.
Variety of Ways to Accept Payments
Businesses can receive payment by ACH in anassortment of ways. Initially, customers can provide their checking account information online, over the phone, or with an old-fashioned paper form. Once that information is online, the electronic payment can take place.
Easy for Customers
Customers also enjoy working with businesses that accept ACH payment processing. They have the choice to automate their payments instead of being forced to go through the motions of opening bills each month, writing checks, and mailing the bills out again. An additional convenience, is that unlike credit card information which has a short expiry life, checking accounts are often for life and rarely need their information updated.
The streamlined method of ACH payments keeps errors to a minimum. If bills are sent and checks are written every month, there higher chance of lost checks and missed payments. With ACH, you only need to set up the account transfer once, and payment systems will verify that it is set up correctly, and after that, all recurring payments will be made successfully.
Safe and Secure
ACH payment systems are secure and can minimize fraud, though it is wise for businesses to always monitor their accounts. With all reputable payment processor, any information is encrypted, making it problematic for thieves to steal your information. This method offers additional protection, because unlike checks, there are no physical items being passed back and forth or left lying around with sensitive information on them.
How to Start Using ACH Processing?
If your business is ready to start using ACH for payment processing, it is simply a matter of signing up. Visit www.ach-pay.comto learn more and get started with ACH payment processing.