You have probably heard that ACH is a must for successful businesses, but do you know why you should use it in the first place? This article lists several important benefits of using ACH and partnering with a processor like ReliaFund:
- ACH payments are more often than not quicker and more secure than paper checks. When a customer sends a check for payment, the business must wait for the mail to come, apply the payment to the account and then allocate resources to go to the bank to make the deposit. There’s also the possibility of the check being lost in the mail. ACH payments eliminates that entire process. In the time it takes your customer to write a check, an ACH transaction can be completely submitted.
- ACH transactions are usually a much less expensive option compared to credit cards or paper checks. The cost associated with processing a credit card payment can range between 2 percent and 5 percent per transaction. Issuing a paper check is approximately $3-$5 per transaction, when calculating printing, postage and personnel cost while an ACH payment usually cost a business less than a dollar per transaction, depending on the volume of transactions and the perceived risk.
- Fewer resources are used due to the electronic nature of ACH payments. This electronic payment option eliminates the need for check paper, check ink, fuel to transport checks, time and labor to handle and deposit checks, and so on, leaving you and your team additional time and money to focus on other areas of the business.
- ACH transactions help business owners and managers handle finances. A processor like ReliaFund provides an intuitive and useful gateway or payment platform that contains many tools capable of handling all an organization’s reporting needs. These tools make it easier to track, sort and categorize transactions and customer information.
- ACH transactions increase the chances of a business being paid. Most banks process electronic payments before they process paper checks. Also, ACH transactions can be set to recurring billing, this eliminates the time and stress associated with collecting a monthly payment. Once the business has the customers authorization for a recurring plan, the payment schedule is set and will remain in place until the balance is paid or the customer contacts your business to opt out.
- Users have more certainty that they will be paid when using ACH transactions compared to other payment methods. For example, credit card charges can be disputed by a consumer for many reasons. While ACH transactions, under the law, can only be disputed for three reasons: The transaction was not for the exact amount authorized, it was processed earlier than the authorized date, or it was not authorized at all.