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5 Reasons to Start Accepting ACH Payments

5-reasons-to-start-accepting-ach-payments

An ACH payment is a kind of electronic transaction that transfers money from bank to bank. The average consumer may not always realize that they regularly make and receive payments from the Automated Clearing House network. Whether you’re a small business owner or an average vendor, ACH payment providers like OnlineCheckWriter.com will be necessary to your business in one way or the other. ACH payments are specifically designed to protect your data and prevent fraud. Whether ACH is suitable for you or not comes down to the needs of your business. As a matter of fact, a business that relies on monthly billing can save a ton of money by using ACH instead of credit cards or other standard payment methods.

Types of ACH Payments

There are two main types of ACH payments: (Credit and Debit)

Money can either be “pulled” from your account or “pushed” into another bank account.

ACH Credit - Used by a business to “push” money into another bank account.

ACH Debit - Used by a business to “pull” money from a customer’s bank account.

If you’re considering setting up ACH billing for your business, there are several important things to keep in mind before beginning the process. The truth is that there are various electronic payment options for you to explore. While some will make sense for your needs, others simply won’t work. If you’re still unclear whether ACH is suitable for you, consider these benefits.

Reason 1 - Speed

While ACH may not be the fastest payment method out there, it does offer several additional benefits over the traditional methods. ACH payment processing times are much faster. That means users will get paid faster and have more control over their cash flow.

People, in general, appreciate having fast, online access to their money. ACH payments are the perfect choice for most B2B payments, especially recurring payments. The batch processing and low fees make ACH transactions highly efficient. Moreover, the advent of same-day ACH payments makes the payment method even more effective.

Reason 2 – Security

The ACH is federally regulated and managed by the National Automated Clearing House (NACHA) and the transactions are protected under federal law. Since the transactions pass through clearinghouses that enforce strict regulations, ACH transactions are more secure than most of the payment services available today.

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Money is transferred directly between bank accounts, with banking details kept confidential. If there’s fraud or an error, ACH payments can be reversed. ACH payments eliminate the security risks of standard payment processes, thereby increasing the chance of more business with the company and customers.

Since businesses have been so slow to move away from traditional payment methods, check fraud is still prevalent. ACH reduces the risk of lost or stolen checks or exposing credit card information online. This makes choosing ACH payments smart for small businesses as they are less prone to outside intervention.

Reason 3 – Convenience

ACH payments are convenient for both businesses and individuals alike. Clients can pay whenever and wherever they want without wasting time using an online platform like Online Check Writer. ACH debit also offers customers a way of automating recurring payments. ACH provides a far more user-friendly option by eliminating the tedious paperwork processes and the need to carry checkbooks around.

Since payments happen electronically, you no longer have to deal with trips to the bank or paper invoices or the hassle of dealing with physical checks — saving you money on postage, transportation, and labor. Again, since they are digital, the payments can be set up as either one-time or recurring payments. Plus, it makes life more convenient for your customers as well.

Reason 4 – Affordable

One of the main benefits of ACH payments is the cost savings prospect. You may not realize it, but your business is likely spending a hefty sum every year just to pay bills. On the other hand, ACH payments are among the most affordable payment methods out there. In fact, with Online Check Writer, any business owner can set up and automate rent payments via ACH. ACH Payments have lower processing fees than credit cards, wire transfers, or any other type of payment method.

In most cases, ACH transactions are less expensive for merchants, and when we compare the fees for processing paper checks, credit and debit cards, and ACH payments, all the other methods lean toward the expensive side. The lower cost also makes ACH payments ideal for businesses that need to process a high volume of B2B payments and other standard payments like wages.

Reason 5 – Less Errors

Human errors cost businesses both time and money. According to IBM Security’s Report, human errors account for 23% of data loss in 2020. With ACH, you eliminate the chance for human mistakes to occur.

When people write checks, they’re prone to make mistakes. Those mistakes are less likely to happen when everything is digital and automated. We eradicate the risk of human error by replacing the manual work required to process payments with an automated system. Transactions are paperless and automatically recorded, leaving even less room for human error.

One of the most crucial things for any small scale/medium scale business is maintaining control over its finances. With ACH payments, that part becomes much more manageable. ACH payments can also save you a lot of time and eliminate trips to the bank – meaning your employees can spend their time on other, more productive work.

Leveraging ACH Payments for Your Business

Offering your customers diverse payment options makes payments easier. And that means more money in your pocket. Now that you've understood the fundamentals of ACH payments and why they're good, you can start using them right away. Sign up for Online Check Writer, and you can get started with ACH payments at absolutely no cost.

As technology advances, consumers expect much more advanced options to suit their needs. Offering various payment options, including ACH transfers, is a safe and convenient way to serve customers better. After all, they are convenient, cost-effective, secure, and affordable.

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