ACH payment processing is a great way to save your business time and money. Not everyone is sure what it is or what they need to know, but it’s a way that allows for electronic debiting and crediting for checking and savings accounts. ACH network reduces paper check processing and makes it easier for merchants to receive funds. Initially, it started small back in the 1970s, but now ACH streamlines payment processing for hundreds of thousands of businesses around the globe. Today we’ll cover a few of the benefits that make ACH attractive to business owners and why you should consider using it.
ACH Payments Are Popular With Customers
ACH payments and transfers empower consumers with the ability to make payments online and set up recurring payments for large bills such as car notes, rent payments, and mortgages. By using ACH, consumers never have to worry about late bill payments, and they can maintain good credit without any extra effort required on their end. Payments are made on time every month, and consumers save money by avoiding unnecessary late fees. ACH is also the preferred method for employees to receive paychecks as direct deposits have become the norm for companies and small businesses.
Faster Transaction Times
With ACH, merchants receive digital payments in shorter time frames than with paper checks. Typically payments are received in 3 to 5 business days, and now some processors can settle transactions on the same day or the following business day. ACH transfers are processed in batches by networks three times a day to ensure that merchants receive payments quickly and efficiently. By streamlining your business with ACH, you will have funds hitting your bank account faster to keep everything running smoothly, and you will no longer need to wait weeks at a time to get paid.
Fewer Human Errors Due To Automation
With manual processes, your accounting and bookkeeping methods are prone to human error. The purpose of ACH is to make these processes simpler so that business owners can utilize the tools provided by third-party processors to efficiently debit clients for payments and not have to do everything by hand. Payment processors offer user-friendly tools that integrate seamlessly with accounting and banking software to save you time and energy. The likelihood that errors will occur is lower, and you can focus your time on other aspects of your business.
ACH Saves Time & Money
ACH processing saves business owners time and money both as payee and payor. From the payee perspective, ACH Network and third-party payment processors provide your business with access to integrated ATM networks that check account balances in real-time. With ATM access, you never have to be concerned with bad checks or fees incurred from insufficient funds. From the payor perspective, ACH gives you the power to automate debit transfers, payroll, direct deposits, and bill payments for rent, utilities, suppliers, and vendors. Recurring payment options will eliminate the need to print or handwrite checks and send them out to pay the bills.
Encourages Recurring Payments
The availability of ACH as a payment option for customers increases the likelihood that they will remain a customer for long periods. Set and forget payment methods give customers peace of mind, and they don’t have to think about paying the bill. It automatically comes out of their checking or savings account, and unless they are unsatisfied with your products and services, they are much less likely to discontinue payments. For business owners, ACH payment processing provides a predictable amount of monthly income and allows them to focus on growing the customer base while increasing customer loyalty.
Remote Payment Capability
As the recent pandemic showed all of us, businesses need an online presence to survive. With ACH, payment authorizations happen online on desktops, tablets, and mobile devices. The speed and convenience of online payment processing are something that your customers and vendors you do business with have come to expect. By offering ACH, payments can be made virtually anywhere and with almost any device quickly and more efficiently. As a business owner, remote paycheck capabilities allow you to conduct transactions without the need to be at a specific location to handle fiscal responsibilities.
Greater Control Over Cashflow
With a predictable flow of automatic payments coming in, business owners establish a baseline of expected income to determine how to allocate funds more effectively. The combination of ACH and a thorough analysis of operational activities help businesses identify potential opportunities and have the cash flow to fund them. By having greater control over your cash flow, you can make more intelligent decisions that will help you gain more customers and increase profits. Nothing beats stability, and with ACH, you won’t be overly stressed while trying to scale your business.
ACH Payments Are More Secure
ACH payments and transactions are digital, which means they are inherently more secure than paper checks. Paper check fraud is decreasing but remains the most vulnerable payment method. According to a recent study, checks accounted for 66% of payment frauds. With ACH, the Electronics Payment Association governs third-party payment processors and financial institutions and requires them to be PCI Compliant. Compliance ensures that there are safeguards in place to protect merchants and consumers. With over 12,000 financial institutions, 650 industry councils, and a network of regional ACH associations working together, ACH has become one of the safest payment options to prevent fraud.
Sustainable & Environmentally Friendly
The environment has become a more serious issue for businesses large and small around the globe. With ACH solutions, your company can do its part and act responsibly by going green and eliminating the need for paper, transportation and shipping, fossil fuels, and emissions that pollute the air. Your dedication to becoming environmentally friendly and sustainable is something that your employees, customers, and partners will appreciate. With a strong advertising and promotions strategy, you could build your brand’s reputation and generate more business.
As you can see, ACH has many benefits that make life as a business owner much easier and less stressful. When deciding on which ACH processor to use, be sure they are reputable and have the tools you need to grow your business while protecting you from fraud.