Posted by NationalACH on May 31, 2010

ACH payment processing is the least expensive payment processing options for merchants.  When a buyer chooses to pay by ACH, merchants save big.  Rather than paying credit card companies over 2% of the sales price, merchants add that 2% of bottom line profits.

ACH has become a generic term referring to payment processing where money is direct debited from a buyer’s checking or savings account.  ACH payments for ecommerce are classified web transactions and are frequently called electronic checks or echecks.

Merchants that offer multiple payment options experience a sales lift for each alternative payment option.  Echecks are the most popular alternative payment option and increase sales 8-20%, depending upon industry and product being sold.  Therefore, it certainly is wise to offer ACH as a payment option.

But, with ACH merchant accounts, businesses profit two ways.  First merchants increase sales.  Secondly, merchants getting paid via ACH rather than credit cards save on payment processing costs.

For the vast majority of ACH transactions, fees are assessed on a flat per transaction fee.  Compare this with credit card processing where merchants must pay transaction fees plus a percentage of the sales price.

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