In the recent decade, organizations from all industries are opposing the same difficulties, which is the rise of operation costs incurred when conducting business operations. This caused many entrepreneurs to actively find new ways to reduce their expenses. Various businesses have discovered that they can save money through incentivizing consumers to use an economical payment option, known as Automated Clearing House (ACH) instead. ACH payment processing are transactions that are performed electronically, which directly transfers funds from one bank account to another. ACH processing is highly efficient for many businesses and is an effective payment solution that is highly cost effective and efficient.
So, what other incentives does ACH payment processing offer that makes it such an attractive payment method for many? Listed below are a few hidden benefits that we have recognized.
Considerably Lower Fees
The most prevalent benefit that ACH payment processing provides is that it is a notably cheaper payment method when related to traditional payment options such as paper checks. High-risk merchant account providers usually offer ACH processing services at a rate that is discounted when compared to fees they charge for credit card payments. Having customers become familiar with ACH payments could potentially save your company a lot of money.
Apart from being directly valuable to merchants, ACH payment processing can also be incidentally beneficial to customers. Since ACH processing supports businesses in lowering their operational costs, it permits them to be in a more solid financial position to keep their product prices stable so that customers do not have to tolerate constant price increases for the products or services they want.
ACH Processing is Expedient
ACH payment processing is a very convenient payment option for both merchant’s and the consumer’s alike. Traditional payment options such as paper checks still involve users to go through a time-consuming process that includes having to write a check and then mailing it, using ACH payments, all transactions are performed electronically, allowing the whole procedure to be automated and effortless for customers. ACH processing is particularly effective for customers that pay for recurring services, allowing them to set their account up for ongoing payments.
Merchants may also be in an improved situation when an increasing number of their customers set up recurring payments. Since this payment structure is constant and doesn’t cease until the customers manually stop it, this can be valuable to businesses as it improves the likelihood that their clients stay with them for a longer time. Employing recurring payments also allows the merchant to gain a more consistent revenue stream, because, contrasting to credit, debit or prepaid cards, expiration dates don’t apply to ACH payments.
Reducing Time Costs
Some merchants may not realize, but typical ACH payment processing requires only 24 to 72 hours to clear. On the other hand, traditional payment methods like paper checks, need to wait for a check to be delivered through the mail and then further waiting for it to be processed, the entire procedure could take a week or longer. ACH payment processing necessitates much less processing time as the whole system is automated, allowing businesses to gain access to their funds considerably faster.
Even in the situation where customers don’t have enough capital in their account to cover the transaction amount, the merchant will get notification about this setback almost immediately. On the other hand, paper checks may take up to 2 weeks before the merchant gets a notification about the problem.
By using ACH payment processing , customers enjoy improved security due to the fact that the transfer takes place instantly and there is no dependence on using paper trail, which will drastically reduce the likelihood of human errors such as misplacing or damaging a check.
Now that you have attained a greater understanding of the hidden benefits of ACH payment processing, it is clear that this is the most effective and efficient payment option that can help streamline your company’s finances. Businesses who wish to provide this payment method to consumers should contact a high-risk merchant account provider to learn more on where to start.