Why Business Use ACH Payments

Why Business Use ACH Payments

 ACH Payment Processing

The Automatic Clearing house (ACH) system is used as a secure means of crediting and debiting billions of dollars’ worth of payments every year. ACH payment processing is used widely in numerous industries for both business-to-business and business-to-consumer transactions. This article will explain what an ACH payment is, what they do, and how they can enhance your business.

What Is An ACH Payment?

An automatic clearing house or ACH payment is an electronic means of either depositing or withdrawing funds from a bank account. They can be used by businesses and consumers alike, and they make up a huge percentage of electronic transactions. According to statistics from NACHA, 24 billion payments were made via an ACH payment in 2015.  

How They Work

To initiate an ACH debit, the customer must give you permission to deduct money from a saving or checking account.  Authorizations can be obtained in written form, over the phone, or through a website.  

Once authorized, the payment is automatically deducted from the buyer’s bank account. The funds are then electronically credited to your business bank account. An ACH debit can be used for both one-time & recurring payments.

ACH credits are used to electronically deposit funds to bank accounts. 

 The Clearing House and the Federal Reserve act as the clearing houses for ACH payments  The payment process is automated. Once the account is set up, there is minimum effort required by you to send and receive payments.

What Are The Different Types Of ACH Payment?

ACH credits are used to send money to bank accounts.  For example, employers use ACH credits to direct deposit wages.  The government uses ACH credits for tax refunds and social security payments.  Lenders use ACH credits to direct deposit loans.  Businesses use ACH credits to send money to vendors,& refunds to customers.

ACH debits are used by billers to collect payments for utilities, mortgages, insurance premiums & loan repayments.  And millions of US consumers regularly use an ACH echecks to pay for goods & services online and by phone, fax & mail.

Businesses use ACH debits to accept checks online and check by phone, fax and mail orders.  Echecks are the most popular alternative payment method for American shoppers.  More than 30% of internet sites offer electronic checks at checkout.  The more ways customers can buy from you, the more sales you make

ACH debits are particularly effective for recurring payments.  If you offer subscription or membership billing, ACH payments are the way to go. Customers rarely change bank accounts, ensuring that recurring payments continue uninterrupted.  

Compare this to card payments.  

One in every five cards are reissued each year.  The card information has to be updated before a recurring payment is approved. Updating card information is time consuming, expensive, and gives consumers an unnecessary opportunity to cancel a recurring payment.  

Benefits for Businesses

There are major benefits to businesses who choose to accept ACH payments. These include:

  • quicker payments
  • reduced labor time
  • fewer mistakes
  • fewer resources required
  • giving consumers an alternative means of paying for goods
  • lowering processing fees, which is especially beneficial for recurring payments
  • increased profits through lower fees
  • better cash flow

Benefits For Consumers

There’s numerous benefits for consumers as well. These include:

  • a reduced risk of fraud
  • a greater sense of security for consumers
  • less need to worry about payments getting mislaid
  • providing a convenient alternative for customers who prefer not to make check or credit card payments

How to Accept ACH Payments

If you want your business to benefit from the many advantages of accepting an ACH payment, you’ll need to establish an account with a ACH merchant account provider.  

It’s easier to establish an ACH merchant account than card processing.  And rates are often significantly lower for ACH than card processing.

To apply for an account, you submit an application along with information about your business.  Once approved, you can accept checks online with a simple API integration.  And you can accept check by phone, mail or fax orders using a virtual terminal.  


Electronic payment methods continue to grow in popularity, and they offer numerous benefits to businesses and consumers alike. You benefit from improved cash flow, quicker payments and lower transaction fees.  Your customers get a convenient, secure way to make a one-time or recurring payments.  

How is your company handling electronic payments?

Contact info@nationalach.com today.



High Volume Merchant Accounts

Echecks Boost Profits for High Volume Merchants

High volume merchants discover that adding electronic check processing is one of the easiest ways to increase sales and profits.  

The ACH network the oldest and most reliable electronic payment method available in the United States. As the ACH network continued to expand over the years, it managed to preserve its versatility and dependability.

For high volume merchants, using ACH payments is extremely beneficial in converting shoppers to buyers. 

A Snapshot of the ACH Network

While the overall results for 2015 are still not in, the processing capability and outstanding potential of the ACH network are illustrated by the results of 2014. In April 2015, the National Automated Clearing House Association announced that in 2014, the ACH network facilitated 23 billion payments, which is a 1 billion increase compared with year of 2013.

The WEB transactions represent one of the most promising segments, as they went up by 10.2% in the same interval. The introduction of Same Day ACH will further improve the efficiency of the network by allowing all parties involved to move funds with the speed that is needed in our fast-paced modern times.

High Volume ACH Payments for Your Business

You will find multiple advantages in using ACH payments on your website. The popularity of electronic check payments among consumers results from the favorable way it compares with credit card payments.

Not having to provide card information introduces a degree of convenience that makes a great deal of difference when the customer reaches the checkout page. High volume merchants discover that the fees for ACH payments are considerably lower compared with the ones for credit card payments.

ACH payments provide higher security to both you and your customers through its low chargeback and fraud rate.

ACH payments are compatible with the increasingly popular subscription-based business models through its recurring payment option.


Once implemented, ACH payments make an enormous difference in terms of profits for high volume merchants.  

ACH processing accounts give you an affordable way to accept payments. And ACH merchant accounts are easier to obtain than card processing accounts.  

Offering your customers the ability to pay you with an ACH echeck on your website increases your sales while  lowering  your processing expenses.  

Are you interested in adding ACH echecks to your high volume merchant account?  

Contact info@NationalACH.com today.

Capture More Sales: Accept Checks Online

E Checks for More Sales

Offering electronic checks (echecks) as a payment option gives you an easy way to increase sales.  The more ways customers have to pay you, the more orders you will receive.  

Echecks electronically debit payments from customer’s bank accounts and automatically deposit the funds into the merchant’s bank.  Electronic checks are safe, secure and convenient payment method that lift sales up to 20%.

Echecks let you accept payments from customers that do not have cards, are maxed out on cards or who simply prefer to pay with an electronic check. The fast growth of internet bill payment has built a strong trust in the echeck payment method.  These days, customers expect to be able to pay online with an echeck for all types of goods and services.

Yet, despite the growth of online check transactions, more than half of internet retailers still do not offer the payment option at checkout.  If you do not accept echecks, you are giving away your profits to your competitors that do.

Let’s face it.  There’s endless competition on the internet for customers.  Your competition is only a click away.  Don’t risk losing a customer because you don’t accept electronic checks as a payment option on your checkout page.

Echecks for High Risk Merchants

Echecks are particularly valuable for high risk merchants.  Processing rates are substantially lower than rates for cards, saving money on operating expenses.

Establishing a Check 21 or ACH merchant account is easier than setting up a card merchant account.  Accounts are approved and ready to go quickly.

Payments made with electronic checks create a more stable cash flow for high risk merchants with recurring or subscription billing models.   Customers rarely change bank accounts.  Revenues flow on a continual basis without the need to update information.

Compare this with card processing.  Each year, one in five cards is reissued due to data breaches, expired cards, or other issues.  Merchants then must update card information or recurring payments are jeopardized.


It’s common sense.  The more ways shoppers can pay you, the more sales you make. 

Electronic checks are the most trusted alternative payment method. Millions of American shoppers regularly pay for goods and services with an echeck.

Accept checks online. Accept check by phone, mail and fax orders. Convenient for buyers. Profitable for you.

Do you want to increase sales and profits with echeck processing?

Contact info@NationalACH.com today.

Check Verification Reduces Processing Risk

Reducing E Check Processing Risk

When you accept checks online, you can increase sales up to  29%. Yet some merchants still wonder how safe electronic check processing is.

E checks are the most popular alternative payment method for US shoppers. And are one of the safest ways to process payments.   Enhanced security technology and encryption used by electronic check processors include authentication, public key cryptography, digital signatures, certificate authorities and duplicate detection

The top concern expressed by merchants is that echecks are not processed in “real time” like card payments are.  When a card payment is made, the funds are immediately set aside for that transaction.  With echecks, there is a risk to merchants that funds may not still be in the account when the transaction clears.

Some online merchants with tangible products will wait a day prior to shipping to be sure that a transaction will not be returned.  Digital merchants that offer immediate delivery of products often will simply fulfill the since the cost of goods is significantly lower than with physical products.

There are ways that merchants can reduce risk and increase assurance that transactions will clear.  Verification and authentication are two inexpensive tools that are easy to implement and help ensure safe processing.

Echeck Account Verification  

Check verification services use a variety of data bases to gather information on the account.  Basic verification includes making sure that routing and account numbers are entered correctly and that the account is in good standing.

Verification databases check to see the history of check writing on the account.  The data shows whether or not there is a history of bad check writing on the account, allowing you to eliminate some risk.

Keep in mind that echecks can automatically be resubmitted 2 additional times.  Therefore, if an echeck “bounces” the transaction can be resubmitted..  Most consumers do not mean to bounce a check; they simply make a mistake as to when checks will clear.  Up to 85% of all bounced checks go through when resubmitted again.

Echeck Identity Verification

Merchants selling higher ticket items often find it worthwhile to verify the identity of the consumer before fulfilling the order.  Using a wide variety of public and private databases, the ID verification reduces risk by confirming that the buyer is indeed who he represents himself to be.

ID verification services can match the last 4 numbers of a social security number, driver’s license numbers, birth and death records, phone numbers, addresses, and a wide variety of other public information to the buyer.

Some merchants also will ask a series of questions to elicit information drawn from public records to confirm identity.  These may or may not work well, depending on how accurate the public information actually is.

For most merchants, confirming the last four numbers of social security and driver license information can be enough.  Remember, the more information you ask for at checkout, the greater the chance of shopping cart abandonment.


Check verification and ID verification are inexpensive yet highly effective in reducing processing risk.  

Electronic check verification services confirm that the account is open, is in good standing, has no history of bad checks, and verifies a myriad of other data points. Check verification reduces payment processing expenses by decreasing the number of returned transactions.

Identity verification services confirm that buyers are who they represent themselves to be. Reducing the risk of fraudulent transactions.  

Do you want to reduce processing risk with check verification and ID verification services?  

Contact info@NationalACH.com today.

Electronic Checks Frequently Asked Questions

Frequently Asked Questions

This article address the most commonly asked questions about ACH electronic check processing. If you are thinking of setting up an echeck account, this article will be helpful to you.

What is an electronic check?

An electronic check is an form of payment whereby the money is transferred electronically from a buyer’s bank account to the seller’s bank account.  These transactions are called electronic checks because the merchant or biller uses a check as a source document for the consumer’s account information (RCK, POP, ARC) or the consumer is prompted to use their check as a reference to provide their account information (WEB, TEL).

What types of transactions do electronic transactions include?

  • WEB (Internet based)
  • ARC (mailed payment check conversion)
  • POP (check conversion-POS)
  • RCK (NSF check recovery)
  • TEL (telephone)
  • PPD (consumer pre auth recurring one-time debit)

Is electronic check processing a new service?

Electronic checks have been used as a payment option for years.  All types of businesses offer electronic checks to increase sales, improve cash flow, and give customers a convenient method of making payments

Can Internet and MOTO (mail order/telephone) merchants accept echecks?

Yes.  Electronic checks can be offered as payment option for any type of transaction for all types of merchants.

Will electronic checks save merchants money?

Yes.  Merchants offering electronic checks as a payment option save money by decreasing operating costs, bank fees, return check collections costs and credit card fees.

How do the costs for processing echecks compare with credit card processing?

Electronic checks save merchants 50-90% over credit card transactions.  Most businesses pay a low flat-rate per transaction for electronic checks.  Credit cards charge a discount rate plus a transaction fee.

How quickly will the merchant receive settlement of funds?

Settlement of funds depends upon the electronic check processing..  For Check 21 electronic checks, settlement is generally next business day.  For ACH processing settlement is within 2-4 business days

What training will be needed for customer service agents?

No special training is needed.  Electronic checks are accepted in the same way as credit cards.  The only difference is that bank routing and account numbers are entered rather than credit card information.

Can echecks be used for international charges?

Presently, echecks are available only in the U.S. and Canada. Other options can be used for international payments.

Can consumers “chargeback” purchases like they can do with credit cards?

Contingent liability for chargebacks is much lower for electronic check transactions than with credit cards. With credit card transactions a consumer has 6 months (180 days) to charge back a credit card transaction.

For ACH electronic check transactions, a consumer has 60 days from purchase date to chargeback..  Check 21 electronic check transaction chargeback period is 40 days.   Business to business echecks have a 3 day chargeback periods.

Can the merchant’s bank can provide electronic checks as a payment option for internet/MOTO merchants. 

Most banks do not provide electronic check services for internet / MOTO merchants.

Where will an Internet check transaction appear on the consumer’s bank statement?

For electronic checks processing with Check 21, a complete description of the transaction is included in the area where checks are listed.    For ACH electronic check processing, the transaction appears as a line item in the same area as payments such as direct payroll deposits and ATM transactions, are listed.

Is this process regulated and safe for consumers?

Companies that process payments electronically (electronic checks, credit cards, ATMs) must adhere to government-mandated guidelines. The electronic process is governed under Regulation E, which governs all electronic processing, including ATM and credit card transactions.  ACH electronic checks are governed by NACHA rules.  Check 21 electronic checks are governed by UCC and long-established check regulations.

How is a rejected transaction handled?

Merchants have full online reporting and can track the details of all transactions.  Rejected transactions can clearly be seen in the reporting details.  The report contains all the information necessary to identify the returns so that you can decide whether to contact the consumer directly to follow-up.

Will the customer’s checking account be secure?

Yes, echecks are actually more secure for consumers than paper checks.  Paper checks are handled by more people in the payment process before arriving at the bank.


This article addressed some of the most frequently asked questions about electronic checks.

Echecks are the most popular alternative payment method for US buyers. More than 30% of internet retailers accept checks online.

Are you interested in an echeck account?

Contact info@NationalACH.com today

Want More Sales? Add echecks at Checkout

More Payment Options Equal More Sales

The more payment options an you offer at checkout, the more sales you make.  

Echecks are the most popular alternative payment method for US shoppers. Millions of shoppers regularly purchase goods and services online with electronic checks.  

Cards and Echecks

Cards are commonly used to pay online. And cards are preferred over other payment types. 

Yet if you only offer cards on the checkout page, you are losing sales.

Surprisingly, more than 30% of Americans do not have cards. Yet 95% of US households have bank accounts and can pay you with an electronic check.

And of those that do have cards, 25% are maxed out on cards. 

Among debt laden Americans, a staggering number of consumers are within inches of maxing out their credit cards.  Even if a consumer wants to buy from a site, there is a real possibility that the sale will be declined because the buyer has exceeded the line of credit available on the credit cards.

Alternative payments, such as echecks, let you profit from buyers who do not have cards, cannot use cards, or simply chose not to use cards for a purchase. The easiest alternative payment method to offer buyers is electronic checks


Accept checks online to get more sales.  You’ll be happily surprised at the number of shoppers who chose to pay with an echeck rather than a card.

Electronic checks are convenient for buyers. And profitable to you.

Do you want to increase sales with an echeck account?

Contact info@nationalach.com today