Cash has been the most popular form of payment for a long time, but credit cards and debit cards are catching up fast, and are predicted that credit and debit card transactions will continue to rise at a steady rate over the coming year.
However, even with the rising popularity of debit and credit cards, businesses continue to search for other payment methods. Why? It’s because debit and Credit cards transactions typically come with high processing costs. One way around these costs is to use a cheaper payment method, such as Automated Clearing House (ACH) transfer.
Below are 5 reasons why ACH is a smarter choice for businesses:
- Lower Processing Fees
One of the biggest perks of ACH transfers are their lower processing fees. Credit cards have long been associated with high transaction fees, and paper checks tend to involve costly and time intensive administrative actions, such as check printing, payment initiation, authorization, signing and dispatching. ACH, on the other hands, transfers funds between two bank accounts via a clearing house, keeping theses transaction and administrative costs down.
- Faster Transactions
Using a check to make payments or receive money can take time. Processing a check, for example, can take up to five to six business days, whereas an ACH transaction can be completed in almost three business days. In addition, a new rule approved by the National Automated Clearing House (NACHA), will soon make same-day ACH transfers a reality. With ACH processing, businesses can expect streamlined workflow, payment flexibility, and faster access to funds.
Beyond the potential of being faster, cheaper, and more convenient, ACH transactions can also offer you and your customers peace of mind because it is safe. Moreover, high risk ach processing transactions are direct and eliminate intermediaries. In case your customers are hesitant to provide their bank account details, the majority of ACH’s payment processors will perform a two-way micro-validation for authenticity confirmation. This verification is advantageous for businesses because it ensures the account information entered is accurate, and that there are no transaction blocks to the account. Hence, it can be said that ACH transactions are more secure than paper-based checks, which are susceptible to being misplaced or forged.
- Ease and Flexibility
ACH simplifies money transfers, and can benefit both the customers and the business. As a customer, you can stop cutting checks and get rid of your bulky check book. For business, you can offer your customers flexible payment options with ACH, such as one-time payments or recurring payments. ACH can also save you the trouble of dealing with customers’ card expiry or payment failure, because the transaction happens directly between two bank accounts.
- Perfect for Recurring Billing
ACH is perfect for businesses operating on a subscription model, because it can help them save money on every single transaction fee. Additionally, the payment data from these transactions can help maintain long-term relationships with the customers. The payment data also allows businesses to make a note of the payments being made and can help in keeping track of active subscribers. Therefore, helping with customer retention and revenue growth.
Make the Change
Now that you’ve heard how ACH can benefit your business, it’s time to stop cutting checks and make the change. ACH is easy to use and businesses can invest the money saved into other parts of their business. Start conducting your financial transactions in a smarter way-switch to ACH.
To learn more about ACH transfers, please visit www.ach-pay.com.