Posted by NationalACH on Sep 06, 2016
ACH Superior to Checks

If you’re looking for an alternative payment method to offer your customers, you may be considering using ACH payments.

Electronic payments are becoming increasingly popular among consumers and merchants alike. Old fashioned paper checks are on the decline.  Yet, electronic check processing through the ACH network is growing like wild fire. 

The decline in the use of paper checks is confirmed in research from the Federal Reserve.  That shouldn’t be too surprising since there are major disadvantages to paper checks including.

  • Paper checks are easy to misplace.
  • Consumers can claim that the check is "in the mail" or was not received by you
  • Electronic transactions clear much faster than paper items
  • Some consumers are careful about writing checks due to worries over ID theft
  • Younger buyers prefer electronic payments over paper checks
  • Consumers are concerned about the environment and want to go paperless where they can
  • Many businesses find accepting paper checks is a major hassle

What is an ACH payment?

An ACH payment or e-check is an easy way for customers to pay for goods or services online, by phone, mail or fax. Customers provide bank information, including routing & account numbers.  Payments are electronically debited from the consumers' bank accounts and automatically credited to your business bank account.

You have full online reporting to track all transactions.  And payment data is easily imported & exported to your internal accounting systems.  Increasing productivity, decreasing expenses, and streamlining business operations.  

ACH payments can be used for one time payments. Or recurring billing plans can easily be setup so payments reoccur on a regular basis.

Benefits of ACH Payment Processing

Here are some of the main benefits of accepting ACH or electronic payments.

Recurring payments

There aren’t many business owners that wouldn’t appreciate having fewer things on their to-do list. When you sign up to accept an ACH payment, you’re offering your customers a simple way to pay you on a one-time or recurring basis.  

More efficient than checks

Choosing to accept ACH payments is quicker than waiting for a check to clear. Electronic transactions have higher priority than paper checks when clearing through the Federal Reserve.  Faster clearing helps your cash flow.   

Offer alternative payment methods

Consumers love choice - so offer them as many payment options as possible. Many merchants concentrate on credit card payments, but that is no longer enough. ACH payments give customers without cards, are maxed out on cards or who simply prefer to pay with bank debit an alternative to cards.  

Lower costs

ACH payments are cheaper than card processing. For low and standard risk merchant merchants, flat rates can apply.  For high risk merchants, ACH payment processing rates are always less than cards.  If you want an easy way to reduce your business expense and increase profits, ACH is an ideal choice.

Added security

The ACH payment system is one of the most secure methods of electronic funds transfer in the world. Millions of business, consumers, financial services, and government agencies use the ACH network to receive and send payments.  


Accepting ACH payments gives your customers a trusted method of paying you.  The growth of online bill payments expanded so that Americans are now comfortable paying for goods & services on a regular basis with echecks.

At the same time, you benefit by getting your money quicker, reducing operating expenses, increasing productivity, and expanding your customer base.      

How can ACH payments help your business?