ACH Payments for the Insurance Industry

ACH payment solutions let insurance companies offer policyholders a safe and convenient way to pay premiums while reducing the administrative burden associated with payment processing. Insurers can manage their risk by debiting policyholders' banking accounts for payments. They can also deposit settlement funds directly to a policyholder's account.

1. What is ACH Processing?

The ACH network has facilitated the electronic transfer of funds among financial institutions in the United States for decades. From its beginning in 1974, the ACH system has grown to over 25 billion financial transactions per year because it offers a secure, low-cost solution for payment processing.  Even the U.S. Government uses ACH processing to deposit tax refunds and social security payments to consumer accounts.

2. VCI's ACH Payment Solutions

VCI links your business to the ACH network. Its solutions convert payment information into ACH-required formats so funds can be withdrawn from a customer’s account and deposited into a business account automatically.

ACH and eCheck Processing

VCI’s ACH and eCheck solution lets customers pay directly from a bank account. Customers can set up recurring payments, so there’s never a late premium. Not only does it ensure continuous coverage, but it also reduces paperwork when reinstatement is required for late premiums.

Remote Data Capture

VCI Remote Deposit Capture solution lets insurers deposit checks to any bank account at any institution without leaving the office. Checks are scanned using an approved device, and the digitized data is forwarded to the ACH network for processing. Companies no longer have to wait days for checks to clear.

3. Why Use VCI's Payment Solutions?

VCI’s payment solutions are designed to move transactions smoothly and quickly through the financial network to ensure timely payments. They also help reduce paperwork and operating costs that impact the bottom line.

Reliable Cash Flow

Traditional payment methods can be time-consuming. Checks can be returned for insufficient funds.  Fees may be charged for returned checks or per deposited item. Without VeriCheck’s RDC, daily trips must be made to deposit checks. Using an ACH solution means improved cash flow, fewer bank fees, and less time processing payments.

Reduced Paperwork

With ACH processing, insurers no longer have to handle the paperwork associated with lapsed policies as a result of late payments. Insurers can combine ACH solutions with paperless invoicing to significantly reduce the amount of paperwork related to insurance policies. Less paperwork means more time can be spent interacting with customers and potential customers.

Security Compliance

VCI’s solution stores personal and payment data in a secure and compliant database that can be accessed via a web interface. Financial data is masked according to PCI requirements, and personal information is stored following government standards.  Custom APIs allow for integration with existing systems while maintaining security standards.

With VCI’s payment solutions, insurers can move their digital transformation forward by creating a more agile environment to address customer needs. Not only can digitized payment processing create a better customer experience, but it can also improve a company’s bottom line. Contact us for a free cost analysis to see how much we can help your bottom line.

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