What is an ACH Payment?
If you have ever exchanged money through Paypal, received a direct deposit from an employer, or paid your utility bill online directly from your bank account, then you have participated in an ACH payment.
ACH stands for Automated Clearing House, the United State’s financial network that manages and oversees automatic, electronic transfers of funds between banks.
Can My Small Business Accept ACH Payments?
When you accept an ACH transaction at your business, you are enabling your customers to electronically transfer money from their bank account into your business’ bank account.
One of the ways that your company can tap into this mainstream method of payment is to work with a dedicated ACH processing company.
What are the Benefits of ACH Payments?
ACH payments can be extremely convenient to both you and your consumers, as it is a completely hands-free transaction. It is even more beneficial if your business lends itself to recurring payments. ACH processing can allow your business to automatically process payments monthly versus having to invoice customers and wait for their payments.
Typically, ACH processing fees are lower than credit or debit card transactions. Your ACH processor will charge you a processing fee, but because ACH transactions do not involve credit card networks, processing will cost less, allowing you to keep more of your hard-earned money.
It is also very easy to track income with ACH payments, as your banking institution automatically creates a record for each ACH transaction.
Are There Any Drawbacks to ACH Payments?
While there are limited drawbacks to ACH processing, it is important to note that ACH transfers can typically only occur between two US-based accounts, meaning international transactions are not usually possible.
Additionally, there are some timing limitations when it comes to processing ATM payment batches. Batches are processed within normal business hours, meaning payments made outside of those times can slow down your receipt of cash.
If your company would benefit from ACH payments and you are considering working with an ACH processor, look no further than EFX. Our fully customizable ACH solutions are designed to open new markets while increasing productivity and efficiency.
Contact us today for a no-obligation consultation.