In today’s modern society, we are all well acquainted with payment methods such as check, cash, credit, debit and prepaid cards. Nevertheless, when it comes to recurring billing, these are not our only payment possibilities.
ACH payment processing are payments that are electronically transferred through an Automated Clearing House (ACH) network. This process allows us to make a direct funds transfers between two distinct bank accounts. As landowning prevalent alternative option to paper checks, ACH payment processing are generally being used for direct deposit payroll, payment of monthly bills, invoices, subscription centered service sand a wide variety of payments that are of a recurring nature.
Apart from these practices, ACH payment processing truly offers more than just streamlining invoicing and recurring payments. With appropriate application, ACH processing can be an exceedingly beneficial option for your company.
- Diminish Processing Time
One of the most significant aspects about ACH payment processing is that banks and other financial organizations like handling them first, so to compensate, people who chose to make their payments using ACH processing will be more likely to get paid sooner than those who are using the conventional methods of paper checks. additionally, ACH payments may only be disputed for three fundamental reasons, those being: if the funds moved was not the exact amount that was approved, the transaction took place prior to the authorized date, or that the transaction was never fully permitted at all. On the other hand, traditional payment procedures such as credit cards may be disputed for various reasons. Additionally, it is more customary that credit cards have a larger non-payment rate, banks and financial institutes may also at times keep the funds on hold for a lengthy time period.
- Restructuring the Process and Reducing Errors
If your business decides to adjust to ACH processing, you will significantly reduce the dependence on your paper pushing practices. It will no longer be essential to waste time and resources with paper invoices, paper checks and expensive mail delivery charges as well as fatiguing your staff with trips to the bank. ACH payment processing can also be employed for automating the invoicing procedure and tracking of payments, granting your business to enhanced efficiency. ACH processing is notable for simplifying and automating the payment process in its entirety, Additionally, as there is less human involvement, it will successfully mitigate the probability of manual errors.
- Cutting Costs
Now the principal and most significant reason why ACH payment processing is the finer choice compared to traditional payment methods such as paper checks, is that it aids businesses in saving a substantial amount of money over time. Once a business adapts to ACH processing, they will stop squandering resources and funds on redundant aspects such as printing and cutting, confirmation and manual processing, as well as mailing and delivery costs. The savings amassed can then be utilized for more productive purposes such as employee incentives or keeping product price steady.
4.Increased Safety and Security
Using ACH payment processing, customers are required to only provide a bank account number, which then is then encrypted and handled by a highly secure system. This data can be found on the bottom of each check, and is also known as the routing number. Contrasting to ACH processing, paper checks are not as secure, as that piece of paper is distributed through multiple hands, which will increase its chances of being misplaced, stolen or damaged. Using ACH payment processing, all these risks are alleviated as funds are automatically relocated, hence diminishing the possibility of frauds.
Paper checks are old fashioned and ACH payment processing is the way to move ahead. The faster your business adapts, the easier it is for your company to remain in a dominant market position. To get started, contact a trusted ACH payment processor to open a high-risk merchant account.