Are you considering incorporating a new payment solution into your website, but would like more information on potential options before making a final decision? If so, we’d like to share with you an alternative to the traditional methods (i.e., credit cards and paper checks) that is increasing in popularity amongst business owners and consumers. Have you heard of ACH? If not, you are in for a treat.
What is ACH?
ACH stands for Automated Clearinghouse (commonly known as e-checks) and is an electronic payment delivery system that facilitates credit and debit transfers for institutions nationwide. This method of payment allows businesses to electronically process and collect funds straight from a buyer’s checking account to pay for goods and services. Although ACH fund transfers are typically used to make monthly payments to service providers (i.e., cable, internet, and utilities), its usage is increasing in regards to making online, point-of-purchase, person-to-person, and business-to-business payments.
ACH Online Payment Types:
- WEB – Website originated debit (initiated by a customer)
- PPD – Personal account debit (entered in through an online virtual terminal or via recurring auto withdrawal)
- CCD – Business account debit (entered in through an online virtual terminal or via recurring auto withdrawal)
Why are Businesses Owners Making the Switch to ACH?
- Decreased Transaction Cost – The thing that makes ACH payments so attractive to business owners is that this form of fund transfer possesses low processing fees when compared to paper checks and credit cards. With ACH, the middle man is cut out of the picture; the funds are transferred from the buyer’s bank account directly to the sellers, which helps keep the fees at a minimum.
- Faster Processing Time – Standard ACH settlements typically take three to four days to be deposited into your account, but advanced funding is now available to qualifying businesses. This creates increased workflow efficiency and quicker access to your funds.
- Security – ACH payments are designed to alleviate the fears associated with check writing. For most people, when they think about writing a check and putting it in the mail or handing it over to someone, it gives them anxiety because of the possibility of the check getting lost or being altered. ACH payments are federally regulated, which makes each transaction more secure and puts the buyer’s mind at ease.
- Perfect for Recurring Billing – For businesses that operate on a subscription-based model, they will be charged a transaction fee for each withdrawal. The cost of the fee will be dependent on the method of payment the customer uses. With ACH fund transfer, businesses can expect to see the lowest fees in the industry.
- Convenience – The benefits of using ACH touches both buyer and seller. The buyer can now rid themselves of their checkbooks, eliminating the process of having to go out and purchase things like envelopes, stamps, and more checks, which waste time and money. The seller will lessen their concerns regarding customer disputes on charges because the customer is in control of the payment process.
Why Should Business Owners Build ACH I
nto Their Websites?
According to an announcement posted by NACHA, in 2018, 23 billion payments were made through the ACH network, totaling $51 trillion. In internet payments alone, the segment saw a 14.2 percent increase in activity, reaching a total value of $2.9 trillion.
For all businesses, the objective is to improve your bottom-line by making your services or products available to as many people as possible. ACH is quickly growing in popularity amongst consumers and business owners, and you don’t want to miss out on getting your share of the profits due to omitting payment options some may feel more comfortable using. Join the trend and learn how you can capitalize by incorporating ACH into your new or existing website by visiting VeriCheck today.