20 Reasons Merchants Use ACH Payment Processing

1. Reduced Banking Fees - Processing checks electronically dramatically reduces or eliminates bank deposit item fees and NSF return fees on those checks not clearing.
2. Save Money - Checks processed and returned electronically only incur a nominal transaction charge.
3. Fast - Most electronic transactions are processed in 24 - 48 hours. Faster processing means faster NSF notification and more efficient check recovery.
4. Fast Settlement - Electronic items, including NSF checks, are processed ahead of paper items and cleared or rejected faster. You get your money faster.
5. First Claim To Account Funds - Electronic transactions get first claim to any cash in the account. The reason is that banks routinely post ACH transactions before they post paper checks. Even if the available funds are insufficient to cover all items posted, the likelihood that you'll collect is higher if you re-present an electronic ACH entry rather than a paper check.
6. Recovery Odds Increased 33% Electronic submission allows a third redeposit electronically, significantly enhancing the chances of collection. As the saying goes, "Third time's a charm."
7. Collection Ratios up to 85% -Electronic check recovery collection ratios have exceeded 85%, based on age of check, when processed. Electronic checks are processed ahead of paper checks-jumping to the front of the line, clearing ahead of checks written days earlier.
8. Customers Return Faster- Faster NSF settlement brings customers back into the clients' business that much faster, allowing them to resume purchasing goods or services.
9. Save Money. Automated Payment Entry Options - Electronic MICR Check Readers are available that help make transaction processing volume more manageable, dramatically reducing entry errors.
10. Competitive Advantage - Competition is tough. Smart businesses are offering consumers multiple payment options to pay by check via telephone, fax, or over the Internet. Customers expect the convenience of electronic payments when purchasing merchandise or services.
11. Increase Cash Flow - Electronic check processing helps ensure that contract payment clauses are fulfilled. Automatic debits to the customer's account take away payment-delaying tactics.
12. Payment Plans - Customized automated payment plans are easily implemented to meet the customer's personal financial abilities. Enter the payment information into the software once and forget it—the program automatically debits the customer's account as scheduled.
13. Convenience - More and more consumers are opting for electronic solutions for recurring payments and direct deposits. They are looking for convenience and ways to eliminate mundane tasks such as writing and mailing the same checks every month.
14. Multiple Payment/Order Channels - Check acceptance broadens the customer base; increasing customer options leads to more sales, increased revenues, and higher profits.
15. Reduced Payment Processing Expense -Electronic transactions are less costly-flat fee per transaction versus a percentage of the total sale with credit cards, manual handling dramatically reduced.
16. Administration Saves Money- Electronic Check Processing virtually eliminates the costs associated with preparing and mailing customer invoices, and other costs such as: Accounts receivable follow up; bank fees; bad debt; collection expense; and administrative expenses.
17. Customer Payment Options -Businesses want control over costs associated with payment options-if one payment option is less costly than others; they want the knowledge and ability to influence the customer's choice.
18. Safe and Secure. SSL, 128 bit encrypted transmissions. This meets the highest standard of the government's current transmission requirements. When data files are sent for processing, they are scrambled prior to transmitting, then unscrambled prior to processing, adding to the prevention of fraud and unauthorized access.
19. Easy Reconciliation - Automatic posting of settlements matches paid checks and lists those checks that did not clear for immediate follow up. NSF checks can be automatically resubmitted.
20. COD - Customer Service - Next day settlement allows merchants to hold shipments until check clearance is verified, eliminating potential bad debt losses and re-stocking expenses.