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5 Reasons Your Business Needs ACH Processing
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by:
Wayne Akey |
Almost any business,
on the Net or not, can benefit from using the ACH system to electronically
move money. Here are the top 5 reasons why:
1) Accepting checks via your web site.
Everyone knows you have to accept credit cards to succeed online.
The problem for many consumers is that they either don't have
a credit card or are at their credit limit. The good news is that
the vast majority of these consumers have a checking or savings
account that you can access for payment.
Using ACH processing allows you to accept payment from a checking
or savings account electronically. Funds are debited from the
customer and credited to the business owner. Issues such as bounced
checks or closed accounts can be addressed through a combination
of fraud screening and collection tools. This includes the ability
to verify in real time that the account number the customer uses
is valid and that there is money in the account.
There are many providers. PayPal, http://www.paypal.com is perhaps
the best known. There are more economical options available. The
processor you elect to use should have experience, a client list
and easy to use web site integration tools.
ACH processing can be much less expensive than credit cards. On
a typical £100 transaction you could pay £2.75 or
more for a credit card as opposed to .35 or less for an electronic
check with no discount rate. Using ACH processing can also save
a great deal of
money if you receive an NSF (non-sufficient funds) check. Depending
on what your bank currently charges you can save 90% or more.
2) Accepting checks via phone.
NACHA (http://www.nacha.org) the governing body of electronic
transactions now allows a business to electronically debit a consumers
account for payment taken by phone. Similar savings to web transactions
are possible. You can offer a new payment vehicle to your customers
and cut costs. Verification services can reduce fraud and the
charge back window
compared to credit cards is shorter.
3) Recurring payments.
If your site collects a monthly fee from consumers or businesses
and you only use credit cards you are both paying too much and
losing a significant percentage of users who would pay electronically
via ACH.
4) Electronic pay-outs.
If you pay affiliates by mailing checks you could be electronically
crediting their account. No postage or invoice costs. Automation
of payments is possible.
You can also pay employees and vendors via ACH.
5) Processing mailed payments.
Your bank probably charges between £10-£20 for returned
checks. You can convert these paper checks to electronic transactions
and get your money faster, avoid expensive returns and trips to
your bank.
These are 5 solid reasons your business needs ACH processing.
The bottom line is that it can save you time and money while offering
customers a payment alternative.
Partner with a reputable ACH processor and you can enjoy the multiple
benefits of ACH payment processing. These include reduced costs
and time as well as automating manual tasks.
*ACH refers to the Automated Clearing House and generically means
money moves electronically.
©2004 by Wayne Akey
http://www.ach-payments.com
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ABOUT THE AUTHOR:
Wayne Akey has helped numerous businesses save
time and money with ACH processing. Get your
free report on how your business can benefit
http://www.ach-payments.com/software/secrets.doc
or visit http://www.ach-payments.com
------------------------------------------------------
About the author:
------------------------------------------------------
ABOUT THE AUTHOR:
Wayne Akey has helped numerous businesses save
time and money with ACH processing. Get your
free report on how your business can benefit
http://www.ach-payments.com/software/secrets.doc
or visit http://www.ach-payments.com
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