ACH Superior to Checks

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?





How to Establish an Echeck Account

Accept Checks Online

Electronic checks are the fastest growing alternative payment method for internet merchants.  Although cards remain the most often used online payment option, echecks now account for 20% of all internet payments.  

With electronic checks, buyers pay for purchases with a direct debit from a checking or savings account.  The funds from electronic checks payments are automatically credited to your business bank account.

The more payment alternatives you offer at checkout, the more sales you will make.  And, if a card payment is not authorized, e checks give you another way to capture sales that otherwise would be lost.

How to Set Up an Echeck Account

Ecommerce businesses of all types, including high risk merchants, can accept checks online. An electronic check processor account also gives you the ability to accept check by phone, mail, and fax orders. 

Setting up an echeck account is faster and easier than applying for card processing.  Paperwork necessary to set up an account includes an application and submission of standard due diligence documents.

Adding electronic checks to a website is easy.  Integration to your site is accomplished using an application program interface (API) and takes only a few hours to implement and test.  

Reasons to Accept Electronic Checks

  • Online merchants with electronic checks as a payment option report 8-20% of their sales come from echecks.  More than half of those represent sales that would have otherwise lost if echecks were not offered as a payment option.
  • 22% of households do not have a credit card  and 45% of consumers with credit cards are within 5% of their credit limit.  Electronic checks give these buyers an alternative payment method to make purchases.
  • Over 200 million consumers write and receive checks, according to the Federal Reserve. Checks represent 44% of non-cash payment value at over $31 trillion.  Electronic checks give these consumers a way to pay online.
  • Buyers are comfortable using electronic checks since many already pay bills online.  Smart merchants will take advantage of this habitual payment behavior by adding an electronic checks payment option to their sites.
  • If a merchant does not offer electronic checks as a payment choice at checkout, the merchant risks losing a sale to a business that does offer electronic checks to buyers.

An electronic check is a debit payment instrument that is widely accepted and used by businesses, governments, and consumers as payment for virtually any form of commerce.  Electronic checks are among the most secure payments instrument or transaction and are designed to utilize state of the art security techniques.


Electronic checks are the most popular alternative payment method for US shoppers.  Millions of Americans regularly pay for goods & services with echecks.

An electronic check processor account lets you accept payments from buyers that don’t have cards. And gives you an alternative payment method to offer to buyers if a card payment is declined.

Do you want to increase sales & profits with an echeck account?