|July 27th, 2022
There remains no secret that ACH payments are cheaper to process than credit card transactions. The main reason is that the ACH network is not real-time like credit card transactions.
ACH transactions usually originated from the NACHA rules, which include a timeline for receiving banks (RDFI) with which application’s customers typically have their bank account. Returned items can be filtered anywhere from 1 to 4 business days after the transaction originated. These return notifications usually come in many forms like account closed, NSF, etc.
It is not ideal for a website that ships products of any significant value. However, on the other side, businesses usually have a long-standing relationship with their customers, and the customers typically rely upon their service or regularly delivered products. Therefore, many products on a subscription model are referred to as something that keeps functioning, and nothing significantly harms their company’s bottom line.
This is because their services can be paused many times, and their access can be denied till the customer makes the correct form of payment.
Here are some benefits of ACH Payments which you must know definitely-
There are several advantages for businesses and customers that accept and use ACH payments, some of the most common benefits include-
1. Lower Costs
If an organization accepts credit and debit card payments, it indicates that they are highly familiar with the processing fees that accompany these payment methods. This is why ACH payments cost significantly less than credit or debit cards.
When a merchant can compare the processing fees for credit and debit cards, the ACH payments also include credit and debit cards.
This is why paper checks carry the lowest transaction cost due to labor expenses and time. Perhaps, this is why ACH payments work as the least expensive payment method for merchants to accept money. When the entire set of transactions gets added up, the overall reduction cost can affect your processing fees.
There is no doubt that checks remain the most vulnerable to fraud, and whenever a merchant signs a paper check and sends it through the mail, there remain several ways through which checks can be compromised.
Not one, but there are several chances that physical checks can be lost or stolen by the customers. This is why checks carry more robust security and authentication.
Many entities handle the set of physical checks, which is the foremost reason they remain vulnerable to signature forgery or tampering. Moreover, the entire account and routing numbers, the check writer’s name, phone, and address are visible on the check and leave no information susceptible to fraud.
ACH payments and eCheck processing services remain convenient for merchants and customers. This is why customers aren’t required to have checkbooks and can send checks via email directly. The merchant also carries the flexibility of selecting one-time payments or setting up recurring billing. A person doesn’t need to deal with trips to the bank or collect paper invoices, checks, and records.
4. Reduce Human Errors
As humans don’t need to deal with physical paper checks, ACH payments will help you to save time and also eliminate several trips to the bank.
It also means that employers can spend their time and utilize more productive tasks. It allows a merchant to spend less time in processing payments with ACH checks. Moreover, electronic ACH payments will help in reducing human errors and ensure proper time is utilized on fixing them.