Why ACH Payment Processing is the Best Option for Your Business

Dealing with payments is an essential part of business. In an era of technological revolution and with the competitive environment ever increasing, one of the major aims of businesses today—especially online business—is to offer customers a wide variety of payment options. Today businesses are learning that providing other payment options besides credit cards could be a deciding factor in whether or not customers will give them business. As a result, ACH payment processing is quickly emerging to be the most preferable payment processing option for merchants.

ACH payment processing electronically debits funds from a customer’s bank account when they make a purchase and the funds are then credited to the merchant’s bank account. There are so many benefits related to this highly sophisticated financial transaction network that in the near future, it is likely that most financial transactions will be conducted through ACH, which will lead us toward a paperless society. Besides traditional business, ACH is also utilized for conducting financial transactions between vendors, banks, financial institutions, and for processing large payment volumes such as payroll.

One of the best things about ACH technology is that it lets businesses save a considerable amount of money as the transaction fees are minimal when compared to credit card processing fees. This batch-based process of accepting payments is more secure than any other kind of electronic payment solution. The ACH Network is governed by NACHA, which not only promotes electronic payment development, but also develops and provides steps to enhance risk management.

The ACH Network is not only cost-effective, but it is also convenient. Merchants have the ability to set up automatic recurring payments with their respective ACH solution provider. Businesses can set up payments to be made to various vendors (such as utility companies) or salary payments for employees on a regular schedule in order to reduce the amount of manual labor associated with these tasks. 
 

Businesses also have the opportunity to enhance cash flow with the ACH Network because non-credit card holders can make fast, simple, and secure payments. Electronic transactions have the first claim to the available funds because banks put ACH transactions through before regular paper checks. Businesses also experience higher recovery odds because ACH allows re-presentment, which enhances the check collection chance while simultaneously saving time and manual labor.

With so many benefits, businesses are adopting this payment method more and more—not  only for their convenience, but for the sake of their customers.