Almost every potential customers have credit and debit cards in their pockets and many who do not owns both. ACH and electronic check processing offers you varieties of payment options and gives you the ability to augment your credit card payments by offering the same convenience to this large and underserved marketófor less than half the cost of credit card processing.
Some Effective Benefits of ACH Payments
Effectual than traditional checks – choosing the ACH payments is faster and secure than just to wait for a check to clear. Electronic check acceptance is higher security and priority than paper checks. Easy and fast clearing helps your cash flow.
Alternative Payment Options – E-Check processing offers varieties of payment options as best possible. Of course cards payments diversify the traditional payment acceptance but ACH Payments give customers without cards. It simply prefers to pay with bank debit card an alternative to cards.
Cost Effective – ACH payments are cheaper than normal card processing. Small and standard merchantís flat rates can apply. For high-risk merchants, ACH payment processing rates are always less than cards.
High-Level Security – ACH Payment method is the most advanced and secure method of electronic fund transfer in the world. Millions of business, consumers, financial services, and government agencies use the ACH network to receive and send payments.
Payment acceptance gives many options to both merchants and consumers. Thus it gives diverse business opportunity to expand and grow business according to national and international market. Merchant specially enjoy the advance payment options that does not cost too much to process the transaction. There are many payment options to process easy and convenience transaction and one such best option is ACH Payments processing that does not cost much as other payment processing charges for per transactions.
One best thing about ACH Payments V/S Credit card processing the fees is less than credit card transaction fees.† Almost 60% of UK Businesses merchants accept this type of payment that are low cost and highly secure according to NACHA, a total of $38.7 trillion was transferred via ACH in 2013, an increase of almost 5 percent from the previous year.
ACH Payment is best known for its advance system i.e. replaces paper checks and less chance of returning checks. It allows business to receive an electronic payment directly into bank account. Commonly known as e-check.
How ACH Payments are different from other cards ACH Passes the card networks and therefore bypasses interchange and assessment fees. This generally makes ACH far less expensive than card payments.
Banks use Automated Clearing House to Transfer Funds Electronically from one bank to another in safe and secure way. In these digital economy people and business firms would like to receive payments through direct deposit. As they find more convenient these method rather than using checks. This electronic transfer of money from one place to another is called ACH OR Automated Clearing House. Whereas wire transfer allows you to move your money from your account directly into the account of someone else.
Letís Checkout the Difference between ACH and Wire Transfer
ACH Transfer – The electronic transfer of funds from bank account to another. Payment transfer is not occurring on real time the transaction is settled on future date.† Transactions are entered with a date to settle which is normally the next day.† Payments are transferred by your banks in groups or batches along with all their other customer’s scheduled payments, usually at the end of the business day. ACH Transfer is less expensive and can be done on batches. ACH cost banks $0.035 per transaction or $0.025 per transaction in bulk. ACH Transfer is given to customers in between $0.10 and $2.50, depending on volume. ACH by definition is meant to be automated, and meant to be delayed settlement, thus the lower cost associated.
Wire Transfer – It is similar to ACH Payments but have some few differences. Wire transfer perform task on real time and cannot be done on batches, performed manually. Wire transfer is more expensive than ACH Transfer. When an individual make wire transfer, both account holders are verified with the exact money in the account. Wire transfers are fast and secure; and since they’re handled individually by the banks.
Transferring funds, either by ACH or wire, is generally safe when using a financial institution. However, if your computer has become infected with malicious software (malware), cybercriminals can steal usernames and passwords and defeat common methods of user authentication employed by financial institutions.