ACH payment processing for low risk businesses types is strictly a volume driven business.
High volume low risk ACH customers include utilities, education, insurance, property management, car payments, and any other business where the chance of a customer disputing a transaction is slim.
Some banks will provide ACH services to large customers. The banks and processors make pennies per transaction. Sometimes banks will not charge for ACH. The reason is that ACH funds get to the bank quickly and the bank can enjoy a period of float on the money.
Banks do not advertise or promote ACH processing service. Bank tellers or customer service representative frequently are not aware that the bank even provides ACH payment processing. The best department to contact at a bank is treasury.
Some banks have moved to providing customers with online reporting which eases the burdens of reconciliation of accounts. Others still function the old-fashioned way and simply send customers excel spread sheets.
Third party ACH payment processors provide more sophisticated reporting services, which is the main benefit of using a third party.
However, as regulations have changed, there are fewer third party ACH payment processors than in the past. When a company uses a third party ACH processor, settlement of funds is delayed by at least a day.
ACH processors, of course, want to make money. Expect to pay at least a few cents more per transaction than if getting ACH payment processing through a bank.
High volume low risk customers are in the drivers seat when it comes to ACH processing. The higher the volume, the lower your rates.
Negotiate for low rates, fast settlement, and dedicated customer service.
Are you a high volume, low risk business seeking ACH processing?
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