Old-fashioned ways of paying like writing out a paper check can be a hassle for both businesses and their customers. They can lead to several inconveniences and cause customers unnecessary stress regarding remembering to write and mail their checks in time each month to pay the bill. Along with this, they also require depositing in the bank, which can be time-consuming. Fortunately, ACH payments are a viable and better alternative. They are more cost-effective, much more convenient for both customers and businesses, and safer compared to sending a check. Keep reading to find out more about the main benefits of accepting ACH payments.
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What is ACH?
ACH stands for Automated Clearing House, an electronic network that allows you to transfer funds between two bank accounts directly. In other words, you can say it is a direct payment into another bank account. With more than 25 billion transactions only in 2020 made this method of payment is becoming more popular, and even more in 2021. Here we will discuss some of the main reasons why more and more businesses are accepting ACH payments:
Benefits Of ACH Payments For Your Business
Businesses perform many functions each day that consists of many transactions, posting, printing, and tracking checks that impose an extra cost on the business with paper transactions. Although, ACH payments help to move your money digitally or you can say transaction through electronic payments so which reduces transaction costs. ACH payments benefitted businesses as well as customers by saving their time and convenience at the same time. Here we’ll discuss the benefits of ACH Payments.
Reduce Costs
Compared to credit and debit card payments, ACH payments can be made at a lower cost to the merchant. ACH payment transaction fees are significantly less than credit card transaction fees, which is why more and more merchants are encouraging their customers to use this method instead through the use of rewards programs, discounts, and more.
Convenience
ACH payments are a much more convenient method of payment for both businesses and consumers. Compared to paper checks, they can easily be made at any time and from the comfort of home. There is no need to remember to write out a check each month and send it in the mail to pay a recurring bill, as the customer can simply set up a regular monthly ACH payment. And on the business side of things, the money is deposited directly into the company bank account, so there’s no need to waste time going to deposit a check in the bank.
Security
Another reason to consider ACH payments for your business is that they are a secure way to pay. Checks are very vulnerable to fraud – after all, they can be lost in the mail or even get into the wrong hands, where there are a number of ways that they could be potentially defrauded. On the other hand, ACH payments can use real-time account verification methods to keep you and your customers safe. With more and more people today using online banking services, one of the easiest and most convenient ways to conduct real-time account verification is to ask the customer to log into their online banking via a verification service, confirming that they own the account and are authorized to make payments from it.
ACH payments are faster, more secure, more convenient, and much more modern than sending a paper check. They can be used to make a one-off payment for goods or services or to pay a recurring monthly bill. So, it’s no surprise that more customers want to use them, and more businesses are accepting them.
Increased Revenue Growth Opportunities
Nowadays in the era of the digital world, most companies prefer to work with partners who accept ACH payments. It helps to open business opportunities because the government also prefers those entities that prefer ACH payments and even young entrepreneurs and customers also tend to prefer electronic payments instead of keeping cash in their pockets.
Fatser Processing Time
Unlike a paper transaction that may take time due to clearing checks time or transferring cash from one point to another, ACH payments are paid online. It helps to process the transaction directly into the account of the beneficiaries that is either customers or business owners. Banks also give preference to ACH payments over paper checks so overall the feature of online processing and the preference by the banks make your funds transfer faster than the traditional methods of fund transfer. Quick fund transfers lead to an increase the loyalty and satisfaction between both sender and receiver. So in this competitive market ACH payments process is up to par that is also easy to use.
Accepting Payments Around The World
In today’s world, globalization affects the movement of money due to the demand for cross-border products and services. In the international market, there is also a worker that works across the world who needs an efficient way of fund transfer in their overseas account. Apart from this many businesses also import and export their stuff that needs funds transferred overseas and through global ACH fund transfer is easy with the countries’ own ACH mechanisms.