ACH Payments Meaning
ACH Payments Meaning
ACH payments meaning relates to the payment processing electronically debits funds for a purchase from a customer’s banking account and credits the funds to the merchant’s banking account.
The Automated Clearing House (ACH) is an electronic funds-transfer system administered by NACHA.
Related to ACH payments meaning:
This article lists the top 14 advantages of ACH payment processing for merchants:
1. Reduced Banking Fees – Processing checks electronically dramatically reduces or eliminates bank deposit item fees and NSF collection fees on those checks not clearing.
2. Save Money – Checks processed and returned electronically only incur a nominal transaction charge.
3. Fast – Most electronic transactions are processed in 24 – 48 hours. Quicker processing means faster NSF notification and much more efficient check recovery.
4. Fast Settlement – Electronic items, including NSF checks, are processed ahead of paper items and cancelled or rejected faster. You get your money faster.
5. First Claim To Account Funds – Electronic transactions get first claim to any cash in the account. The reason is that banks regularly publish ACH transactions before they post paper checks. Even when the available funds are insufficient to cover all published articles, the likelihood that you will collect is higher if you present an electronic ACH entry as opposed to a paper check.
6. Recovery Odds Increased – 33% Electronic submission allows a 3rd redeposit electronically, significantly enhancing the likelihood of collection. As the saying goes, third time’s a charm.
7. Collection Ratios up to 85% – Electronic check recovery collection ratios have exceeded 85%, based on age of check, when processed. Electronic checks are processed ahead of paper checks jumping to the front of the line, clearing ahead of checks written days earlier.
8. Customers Return Faster – Faster NSF settlement brings clients back into the customers business that much faster, permitting them to resume buying goods or services.
9. Automated Payment Entry Options – Electronic MICR Check Readers are available that help make transaction processing volume more manageable, dramatically reducing entry errors.
10. Competitive Advantage – Competition is tough. Smart businesses are offering consumers more payment options to pay by check via phone, fax, or over the Internet. Customers expect you to know about the ACH payments meaning and give them the convenience of electronic payments when buying merchandise or services.
11. Increase Cash Flow – Electronic check processing helps to ensure that contract payment clauses are fulfilled. Automated debits to the customer’s account take away payment delaying tactics.
12. Payment Plans – Customized automated payment plans are easily implemented to meet the customer’s personal financial abilities. Enter the payment info into the software once and forget it the program automatically debits the customer’s account as scheduled.
13. Business Convenience – Increasingly more consumers are opting for electronic solutions for repeating payments and direct deposits and this makes it easy for business owners. They’re searching for convenience and ways to eliminate mundane tasks like writing and sending the same checks every month.
14. Multiple Payment\/Order Channels – ACH widens the customer base, increasing customer options leads to more sales, increased revenues, and higher profits.
In closing, this is a valuable summary of the ACH payments meaning relating to business owners in the USA.
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