While debit/credit cards are some of the most well-known ways to pay electronically, businesses can accept one-time or recurring Automated Clearing House (ACH) Network payments directly from their customer’s bank accounts, at a lower transaction fee than debit cards and credit cards. And businesses can even convert the paper checks they accept at the point of sale to electronic checks (E-checks), ensuring that funds are deposited quicker and in a more secure manner.
ACH Benefits
Businesses can get ACH processing when they sign up for a Capital merchant account. ACH provides numerous benefits for ISV clients, including:
Faster Funds Receipt
By using ACH and E-checks, the funds are deposited much faster than with traditional check processing; often the payment is made within 24-48 hours.
Reduced Processing Costs
ACH and E-checks are less costly than processing paper checks and/or credit cards. Less manpower is required and deposit and transaction fees are reduced.
ACH is one of the fastest growing payment types in the U.S.
ACH payment volume increased by more than 475 million transactions in 2009, bringing year-end total transaction volume to 18.76 billion, a 2.6% increase over 2008 activity. In 2010, payment volume grew 3.4%, to 19.4 billion transactions.
Error & Fraud Prevention
The ACH network is a highly secure system that is automated, allowing businesses to reduce the number of people or check-points that handle the transaction, reducing the chance of error and fraud.
Increased Security
The ACH network offers protection features such as encryption and message authentication, making it one of the most secure payment methods in the electronic payment processing industry.