These days, it is hard to find a business that does not accept credit and debit cards as a payment option, although they are actually becoming less popular. These days, customers prefer to pay with the quickest and most convenient option. And for many, this involves paying with a bank account through the ACH network. ACH payments are becoming more widely used today for a range of payments including direct deposits, paying bills, and more.
What are ACH Payments?
ACH payments are processed through the Automated Clearing House Network. This system is set up to allow for transferring of electronic payments and is run by NACHA or the National Automated Clearing House Association. Payments are settled in batches each day. It is regarded to be one of the most efficient payment methods available today for both consumers and companies. So, what are some of the main reasons why you should start accepting ACH as a payment method for customers of your business?
Speed
ACH payments are very fast and efficient. Compared to credit card payments which can take a long time to clear, ACH transfers are typically cleared in around one to two working days at the most for credits, while debits will be cleared on the next working day. NACHA is always improving this process and making strides towards reducing the clearance time, allowing you to make or receive payments even faster. ACH transfers are a much faster option compared to check payments, which can take a very long time due to postal delays and the fact that they can take up to five working days to clear.
Save Money
When it comes to accepting payments for your business, you will usually be faced with fees. Credit card processing fees in particular can be very high, with some merchants paying more than three percent of each transaction in fees, along with a commission to the payment processor. ACH transactions are more cost effective compared to other types of payments. As they are processed in batches, they offer much lower fees to merchants compared to credit cards.
More Secure
ACH payments are considered to be more secure than other methods of payment for various reasons. They don’t have to be sent through the mail like checks, so there is no risk of the money ending up in the wrong hands or being lost altogether. Along with this, there is a strict verification process in place to make sure that the customer is using their own bank account to pay, and that they are willing to make the payment.
Customer Satisfaction
Last but not least, offering customers the option to use ACH transfers to pay provides more variety, and gives customers more options when it comes to choosing their preferred payment method. In 2022, customers will often prefer having a range of options for making a payment, and you could earn more customers by ensuring that you have their favored option on offer.
When it comes to the payment methods that your business accepts, ACH transfers are a great option to have.
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