BUT the payments US treasury ACH payments are just electronic transfers from one bank account to another. More common uses include:
A customer pays a service provider
An employer pays money to an employee’s checking account
A consumer moves funds from one bank to another
A company pays a supplier for the products
A taxpayer sends funds to the IRS or to local online organizations
Getting Clearing Access
To complete the payments, the organization requesting the payment (whether you want to send funds or receive funds) must obtain information from the bank account of the other interested party.
For example, employers requiring a deposit require employers to provide only the following information:
Name of the bank or credit union that receives the funds.
Type of account in that bank (check or savings)
Routing number of ABA bank
Recipient’s account number
This information allows you to create and send a payment to the correct account.
The same data is required to make previously authorized withdrawals from customer accounts.
Electronic EFT payments are usually from start to finish. However, paper checks are sometimes converted into electronic payments, and funds are moved through an ACH system.
Why Consumers Like Paying with ACH
Easy payments: there is no need to issue checks, reorganize checks when they become obsolete and receive checks by mail on time. No charges will be added to your credit cards, the funds come directly from your bank account.
Autopilot: If you use automatic payments, customers do not have to track invoices or do anything. For better or for worse, everything happens automatically.
Why Businesses Like ACH Payments
Easy to handle: when customers pay by check, companies must wait until work arrives, and then have to deposit the check in a bank. Sometimes, payments are lost and intensive work on these payments is made in a registration system.
Cheaper than plastic: for companies that accept a credit card payment, it costs less to process a transfer via payment with a credit card. In particular, when collecting recurring payments, these savings are added together and these payments only increase the benefits.
Long distance payments: companies can accept payments remotely to ACH, although the same applies to credit cards. If your customers do not have credit cards or prefer not to send your card information regularly, BUT they can provide a solution.
How to Accept ACH Payments from Customers
To accept ACH payments, you must partner with a payment processor. You may already have a relationship or account set up. Start by asking your existing service providers if they can handle the payments PAID to you:
The bank where you keep your business accounts.
The company that already processes credit card payments (or other payments) for you.
Your provider of very popular accounting software, Freshbooks gives you an opportunity for you to create invoices and accept ACH payments.
New payment processors enter the market continuously and may be suitable for small businesses that only need to make infrequent payments.
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