Opt for Frictionless and inexpensive ACH Payments.

Six ways your Company can be benefited from accepting ACH Payments -  MyVenturePad.com

The facility of the ACH network has existed since the 1970s. According to reports, ACH moved financial transactions with more than $51 trillion in 2018, an increase of almost 10 percent from the previous year. That involves government, consumer, and business-to-business transactions, and international payments also. 

What is ACH payment?  

It is an electronic bank to bank payment in the US. Payments via ACH are made through the ACH network, rather than going through the card network, such as a visa or Mastercard. An ACH payment is usually referred to as an ACH transfer or ACH transaction. 

There are two main categories of ACH Payments

Direct Deposits: It covers up all kinds of deposit payments from business or government to a consumer. That includes payroll, employee expenses reimbursements, government benefits, tax and other types of refunds, and annuities and interest payments.  

Direct Payment: The method utilizes funds for making payments, either by individuals or organizations. This type of ACH transaction is the primary concern of the guide-any reference to ACH payments, ACH transfer, or AXH transaction in this guide refers to Direct Payments unless mentioned otherwise.  

Types of ACH transfer: 

There are two categories of ACH transfer- ACH credits and ACH debits. They are different based on how the funds are transferred between accounts-with ACH credits the funds are pushed into the account; on the other hand, in ACH debits, the funds are pulled out of an account. AHC payments take more than 3 working days to appear in the bank account and the time of day when you deposit the ACH file to your bank is crucial. They are some factors due to which the process may fail, thus taking more time to process.  

ACH transfer options are frictionless and inexpensive mode of payments: 

Using the model of ACH payments involve many benefits for companies and organizations who are in need to take payments on an ongoing basis, these benefits are: 

Low Cost: An ACH payment is not made via expensive card methods; it is a medium that is inexpensive for transferring funds electronically.  

Quick and convenient: ACH method is quick in comparison to writing those cheques and mailing them. These processes consume more time and effort, whereas the facility of ACH transactions is easier to perform.  

High retention: Credit and debit card usually expires that leads to involuntary churn. On contrary, an ACH payment, a bank account is the source of funds, and it does not come with such issues.  

Open to anyone: Anyone who is with a US account can pay through the ACH scheme. That includes both business and consumers. 

If the ACH mode of transactions is right for your business or not?

There are some determining factors that decide whether the ACH payments are appropriate for your business or not: 

  • Does your business take recurring payments?
  • Does a significant portion of your clients currently pay via paper checks?
  • Does a significant portion of customers pay using a credit card?
  • Is it possible for you to convert your credit card-using customers to pay by ACH instead?
  • Do you have customers that are not comfortable making payments via credit card?
  • Is your venture ineligible to accept credit card and debit cards?

If you think that your answer is yes for all or majority of points then you must go for the ACH transfer method as it is the most reliable and quick process to do. 

ACH method is one of the quickest, cheapest, and most convenient ways to transfer money. If you are a business owner then you must consider this option to make your task easy.

Della C. Mae

Next Post

Reddit Investors Influence On Gamestop Stock Soar In 2021

Mon Apr 26 , 2021
A battle between an army of amateur investors and multi-billion dollar hedge funds has sparked a trading frenzy, causing the stock prices of some previously unimagined companies to skyrocket as they kicked out sellers in the marketplace. An unlikely beneficiary has been GameStop, a struggling video game retailer that had […]