Recently, a boom has been noticed in the demand for ACH payment processing companies. That’s justified, given the convenience and utility the technology adds to your everyday business transactions. Using ACH transfer indeed gives you total control over your monetary reserves while ensuring a seamless business operation.
ACH payment processing services are everywhere. Although debit cards and credit cards are so common, companies explore other ways to make and receive payments. This is due to the high cost of processing involved with each transaction when a debit or credit card is swiped. Switching to an Electronic Clearing House (ACH) is the key to avoid such extra charges.
Here are all the 5 reasons why ACH is a better alternative.
Low payment costs are one of the key features of ACH. Bank of America, in a Wall Street Journal report, reported that a person spends an average of $4 to $20 on writing a check. This entails the following:
However, with an ACH, funds are passed via a clearinghouse between the two bank accounts, keeping the transaction cost very low. Below is how much you would need to pay, as a fee for a $100 transaction:
Now you decide.
The settlement period is yet another characteristic that makes ACH the perfect transactional medium your business can switch to. It is on par, and sometimes even faster as compared to the traditional alternative payment solutions.
Here’s the biggest perk, the National Automated Clearing House Organization (NACHA), an association that governs electronic payments in the USA, has introduced an operational rule. The rule will make ACH payment processing on the same day possible. NACHA plans to build two windows in order to allow the ACH transition on the same day.
Businesses should expect increased productivity of workflows, payment versatility, and easier access to cash.
Some of the most common concerns about checks do not apply to ACH payment processing. ACH transactions are straightforward and avoid intermediaries, unlike checks, which are vulnerable both to being lost and to signature forgery.
Since the client may be unable to provide his bank account data, two-way micro authentication is carried out by any of ACH’s payment processors to check the identity of the two parties involved.
In the account of the client and the company owner, the processors make two micro-deposits of $0.01 to $0.25. In order to begin sending money, the client needs to check the exact number. This check means two things for the company owner: the account details that he entered are correct and his account does not have transaction blocks.
Cutting inspections no more! To make money transactions easy, ACH is here. ACH offers you the best of all worlds. You say farewell to cumbersome checkbooks as a payer. And you allow your clients the flexibility to make a one-time payment or set up regular payments with ACH.
In addition, because the transaction takes place between two bank accounts, ACH saves you the hassle of following up on payment loss with consumers due to card expiry.
ACH is suitable for organizations working on the subscription model because it helps them to receive purchases by saving them money on service costs in the most cost-effective manner.
The more these firms make sales, the more processing costs there are, and the more cash they lose. Hence, the best alternative is ACH electronic check processing.
We showed you the benefits of ACH that your business can utilize. It’s time to save the checks from being cut. ACH is simple to use. You save cash and can extend this money to other parts of the business. Swap to ACH. For more information about online ACH payment processing, leave a comment.
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