Payments using credit cards, cash or check have long been utilized by businesses, but ACH (Automated Clearing House) transactions can provide a more effective alternative. ACH transactions move funds from one bank account to another using a unique routing number, (just like the number found at the bottom of a paper check).
Providing this payment option to your customers can be a great benefit to both you and them, here are a few reasons why:
- Transaction Fees Are Low
Apart from cash, ACH transactions generally carry the lowest fees of any payment method. This is because funds are moved from one bank account to another without any intermediaries, cutting down the associated transaction costs.
- Increased Convenience
Customers benefit from ACH as they are provided a greater flexibility – check books are no longer needed, and they don’t need to remember to pay their monthly bills.
Businesses can eliminate paper invoices and checks, and no longer have to make time-consuming bank trips. Their accounting staff can be put to better use and become more productive.
- Setup Payments Once
With ACH payments, recurring billing setup is easy – there’s no need to keep doing the same thing month after month. If the billing schedule is authorized by the customer, automatic invoicing can easily be utilized with a payment processing program. Everything is automated to save you time – invoicing, payment, and payment tracking is done for you.
- Preferred Funding
For businesses, time equals money. Priority in payment processing means quicker wait times, giving your business a competitive edge. Banks may have different policies on paper checks and electronic ACH transactions, but generally electronic payments are processed first, saving you time, and money.
- Faster Processing
While credit cards can be disputed for a plethora of reasons, ACH transactions can only be disputed for three: if it was not authorized, if it was processed earlier than the authorization date, or if it was not the exact amount authorized.
Failure notifications are delivered immediately, which means you never have to wonder when you are getting paid. When you receive your money you have immediate access to your funds – there’s no frustrating clearing period. With credit cards, your funds can often be held up for days or even weeks and occurrences of non-payment are far more frequent.
- Security Assured
Customers often feel uncomfortable providing a bank account number – identity theft is a real concern for both you and clients. Paper checks are not much more secure, as they exchange hands multiple times and can be misplaced in an unsecure area. With ACH payments however, the information that customers provide is entered into a secure system and immediately encrypted. Any details clients provide are kept safe and secure, and because the transfer is electronic, there won’t be any missing checks to worry about.
With traditional payment methods, there’s generally a lot of paper involved. Paper checks, invoices, postage, and transportation all come at great cost to the environment. With ACH payments, there’s no paper necessary. ACH provides a greener alternative that’s also kinder to your wallet.
To learn about the many benefits of ACH payments for your business, visit www.ach-pay.com.