While cash is still king, the use of credit and debit cards are quickly becoming the most prevalent means of conducting payments. With the ever increasing popularity of conventional cards, why are businesses still considering other approaches of handling financial transactions?The reason is due to theincreasedcostsincurred with each transaction processed when using acredit or debit card. These conditions make Automated Clearing House (ACH) transfersthe ideal solution.
Below are 5 fundamental reasons why businesses are adapting to ACH processing:
- Practical and Expedient
ACH makes fund transferal a breeze, as it provides you the best of both worlds. To the customers benefit, they are not encumbered by those old-fashioned bulky check books, and on the businesses side, you provide your customers the choice between single transactions or setting up recurring payments using ACH. Additionally, as the transactions occur between two distinct bank accounts, using ACH reduces the unnecessary burden of following up with customers on failed payments resulting from an expired card.
- Convenient Recurring Payments
ACH is perfect subscription basedpayment solution as it allows businesses toreceive payments in the most cost-efficientmanner, by reducing the cost of transactions involved. The greater the quantity of transactions made the higher the fees associated become, meaning a greater loss or profit in the long run, so adapting to ACH sooner is a great choice.
- Improved Security
Adapting to ACH payment processing alleviates many of the commonplace concerns involved when using checks. In contrast to using checks, which are susceptible to getting lost, misplaced, mishandled or forged, transactions handled using ACH transfers are instantaneous and secure. Since providing sensitive information such as bank account details could make your customer uncertain,ACH is the perfect solution as the payments processed are carried out using a two-waymicro authenticationboth authorize the payments and verify the authenticity of the two parties involved. Two micro deposits betweenthe values of $0.01 to $0.25 are sent to both the customers and the company account. The exact amount is then verified by the customer before the order is authorized and money sent. On the business owners behalf, this verification method guarantees that the account information provided is precise and that the account is not blocked for transactions.
- Reduced Transaction Fees
A major feature that makes ACH transactions so appealing is the lower processing cost involved with transactions made in contrast to using conventional checks or credit cards. When using ACH payment processing, funds are transferred securely between two separate bank accounts through a clearing house, reducing the transaction fees involved significantly.
- Expedient Processing
Transaction times for ACH processing offer a good middle ground between check and credit cards settlements. As it usually requires three to four working days to settle an ACH transaction, while a credit card takes two to three working days with five to six business days to process a check. Organizations using ACH can expect enhanced work process efficiency, increased adaptability in payments, and faster access to money.
Switch over to ACH Now!
Now that you recognize the benefits of adapting to ACH payment processing for your business, its time to stop cutting checks.ACH is convenient and effortless to apply,with the added benefit of saving money in various aspects of your business.So, switch over to ACH, and conduct your financial transactions through a more efficient and expedient process.