If you’re looking for an alternative payment method to offer your customers, you might have considered using ACH payments. Electronic payments are becoming increasingly popular among consumers and merchants alike. Many Americans now prefer to pay electronically rather than using a paper check.
This is confirmed in research from the Federal Reserve, which shows the use of paper checks is on the decline. That fact shouldn’t be surprising because, as detailed below, there are some major disadvantages to using paper checks.
An ACH payment or E-check is an easy way for a consumer to pay their bills or for purchases electronically. ACH can be used for one time or recurring transactions.
With ACH, money is electronically debited from buyers' bank accounts. Funds are automatically settled to your business bank account.
Here are some of the main benefits of accepting ACH or electronic 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 on a recurring basis. To help your business run even more smoothly, you can ask your merchant processing provider to automate any invoices so they’ll be sent out on your behalf – meaning less work for you.
Choosing to accept ACH payments is quicker than waiting for a check to clear. Although times can vary, typically, an ACH payment can take as little as 2 to 3 working days. However, it can take up to five business days on some occasions. This will aid cash flow and enable faster settlements for outstanding bills.
Consumers love choice - so offer them as many payment options as possible. Many merchants concentrate on credit card and cheque payments, but with the declining popularity of checks - and with the reluctance of some consumers to provide their credit card details online - an electronic transfer in the form of an ACH payment will give them a greater choice.
Fees for ACH payments are less expensive than processing credit cards. If, like most merchants, you want a simple method to reduce your business overheads and increase profits, ACH payments could be an ideal choice.
ACH payments offer both you as a merchant and your customer an added layer of confidence and security. There is no need to worry about the possibility of signature forgery. And, the payments will go through a verification process before they go ahead, thus protecting both you and the consumer.
You will also be notified quickly if there is problem with a payment. This means you can spend less time worrying if a credit card or check payment is going to go through, which will help to reduce some of the stress that can be associated with running a business.
As you can see, there are many benefits to you as a merchant and to your customers when you opt to receive payments electronically.
Offering ACH payment as a payment method will provide your customers with greater choice and convenience. While increasing your cash flow, lowering your operating expenses, and automating your business operations.
How are you accepting electronic payments from your customers?
Contact info@NationalACH.com today