Do you want to know how to accept ACH payments from customers? The question of how to accept ACH payments from customers is one that many businesses are asking. If you are asking the question, you probably already running a business and you can easily set up the right system for receiving ACH payments from your customers. This is article is an easy 5-minute read with tips.
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ACH (Automated Clearing House) is an electronic system that provides cash transfers between banks and companies. It allows for quick, easy and secure transactions between different banks. A company’s credit card information is kept by ACH provider while the merchant’s credit card is handled by a payment processor.
ACH works by sending an electronic notification to the customer’s bank stating the amount of the payment and the reason the transaction was approved. The customer will have a certain amount of time to respond before the payment is debited from their account.
ACH uses a formula to calculate the amount of the payment. The order of payment is taken into consideration. Each business has different set-up fees so be sure to check with your provider to see what the maximum allowable number of ACH payments they allow is.
ACH fees vary according to the size of the business. It is up to you to determine what will work best for your company.
Some businesses choose to pay a flat rate based on the business size. The fee could range from a few dollars to hundreds per month.
While other businesses decide on a predetermined ACH payment plan. Some businesses set up a predefined number of such payments per month in order to avoid any unnecessary surprises during the month.
Some providers have a list of all providers that accept their payments. This will allow you to make ACH payments from customer requests without ever having to worry about processing the same thing twice.
If you are considering accepting such payments from customers, you should understand how it works. You will need to make sure you are offering your customers fast and secure ways to pay.
For example, if a customer orders a video online and they want to pay with a credit card, the company should offer a way for them to do so. If they want to pay using a check, the company should send them a memo explaining the process. A brief explanation of the process will help the customer make the correct decision and they can keep their business money safe.
Remember that when a customer makes a request for a payment using ACH, the provider is not making any changes to your website or accepting any additional money into your business. If you become aware of a payment through ACH that goes beyond your business limits, immediately stop the transaction and notify the provider immediately.
It is easy to understand how to accept ACH payments from customers. Your focus needs to be on the customer and what they need rather than trying to make more money.