Why Smart Business Owners utilize ACH Payment Processing Over Checks and Credit Cards

Why Smart Business Owners utilize ACH Payment Processing Over Checks and Credit Cards

Presently, Automated Clearing House payments (ACH) are used by most online business owners to send and receive money. Those that don’t should be asking themselves why they should convert. The benefits of an ach payment method are in no particular order are:

  • Security
  • Low cost of use
  • Convenience and Recurring Billing
  • Faster processing

ACH transactions use a customer’s bank routing number and checking account number in order to complete transactions. Businesses that don’t use ach payment processing face the possibility of lost business opportunities in today’s world. Not only do those businesses make less money, but they pay out more than is necessary than they would with a simple conversion to accept ACH processing.


There are common issues with paper checks that are completely eliminated. For instance, check forgeries are not possible. Checks can easily be lost in the mail or misplaced in an office full of paperwork. The fear of some customers is that they may not feel comfortable giving out bank details to anyone over the Internet or phone. This fear can be alleviated because of a two-way micro validation process. The business will deposit one or two small amounts into the account of the prospective customer and the customer will validate what the amounts are and that they were received. Once that is done, the customer can send money for products or services easily and securely. The bonus for the business owner is the knowledge that the account number is correct and belongs to the customer.

ACH Paymennt Processing

Low Cost of Use

Since monetary transactions literally consist of moving money from one bank account to another, the cost is minimal for everyone. Traditionally, people would buy books of checks from a bank, write them to pay for services or products, pay for postage to mail them and then wait awhile for the check to clear on the business end so that the product or service can be received by the customer. With ach payment processing, the cost is not only considerably less, but the time to carry out the transaction is reduced. Businesses which accept credit cards pay a fee every time they process a transaction using them. The cost of ACH is much less, so the business owner saves money there as well.

Convenience and Recurring Transactions

Customers give up the checkbook and stamps in return for fast and easy transactions online. Sellers receive money faster for their products or services and can easily set up recurring payments when it is needed. It allows customers to set it and forget it, so they will not miss any of the features of the products or services they are purchasing. All records are kept electronically for all parties involved in the transaction.

Faster Processing

Thanks to the operating rules designed by the NACHA, National Automated Clearing House Association, transactions of money through an ACH payment process allows money to be sent and received within the same business day. With check payments transactions can take up to six or more days. Credit card transactions, which have to wait for approval from the issuing bank can take up to three days, depending on the policies of the bank. The efficiency and accelerated access to cash is not even comparable to ACH processing.

In a business world where time is definitely money, using ACH to complete transactions whether sending money or receiving it is norm. It is safe, fast, convenient and cost-effective for all parties involved in the transaction. When a customer decides to make a purchase, they want their product or service immediately. ACH processing helps turn that desire into a reality.