The Perks of Using ACH Payments Processing
Offering ACH payments holds many perks — for both merchants and customers. How do ACH payments work, and how can they benefit your business?
The ACH network (or Automated Clearing House) was developed as an electronic replacement for outdated paper checks, which is why ACH payments are also referred to as eChecks. By entering a bank account and routing number, money is debited from one bank account and deposited into another via the network. In fact, billions of transactions are processed across the ACH network each year.
Here’s why so many merchants are turning to ACH payments.
Easier than paper checks
Electronic payments use fewer resources than paper checks, which means:
- Customers don’t have to buy checks, reducing paper waste
- Merchants don’t have to wait on the mail or other transportation to receive checks
- Employees don’t have to expend the time making manual deposits
In comparison to checks, ACH payments save your business money, time, and labor. Plus, since all electronic transactions create a digital bank record, ACH payments make it easy to keep track of your business’ accounting.
Lower transaction fees
ACH payments bypass the card networks — meaning they skip interchange and assessment fees — so they are generally less expensive to process than credit and debit card payments. With card payments, you might pay somewhere in the range of 2% per transaction. But with ACH payments, you’re likely to only pay a flat fee between 25 and 75 cents per transaction.
How does this add up to savings? Let’s say you’re processing a $100 card payment and a $100 ACH payment. The card transaction might cost you $2 to process, while an ACH payment of the same amount might only cost a quarter. When you consider a high volume of ACH payments, you can really save a lot in transaction fees.
Ideal for recurring bills
NACHA (National Automated Clearing House Association) reported that ACH is the preferred payment method for recurring bills like rent, utilities, and monthly subscriptions.
It’s a simple way to make large payments and customers can even opt in to automatic withdrawals for a set-it-and-forget-it solution. This hands-off option ensures that customers never forget or miss a payment. Plus, it can help your retention rates as well.
Claim your perks
You and your customers could be reaping these benefits, and sooner rather than later. Are you ready to learn how ACH can help improve your business’ payment solutions and customer experience?
Visit our website or call us at 866-290-5400 to speak with a payments professional about getting started.