What is ACH?
The Automated Clearing House (ACH) is an electronic network used in the United States that connects banks and financial institutions together. Transactions can be processed quickly, securely and efficiently through the ACH Network. This is because all transactions are processed in batch mode, which allows data to flow between financial institutions much more easily. ACH processing enables things like, direct deposits, electronic payments, debit card payments and businesses-to-business payments to exist.
The ACH Network can be used to process many different types of payment transactions online for your business. It's provides a much more versatile and cost-efficient system than relying on receiving payments through credit cards and mail. ACH processing allows for your business to make and receive transactions completely electronically. That means less time spent filling out paperwork and more time connecting with your customers. It also means paying less on conducting transactions, saving you money and increasing the potential of your business. Currently, the ACH Network is responsible for conducting over 20 billion transactions per year and will only continue to grow. Do you really want your business to be left behind?
Choosing the Correct ACH Processor
Your Business Can Benefit From an ACH Processor
ACH processors allow your business to communicate with the Federal Reserve and the Electronic Payments Network. When you make a transaction, your ACH processor will pass the request for a transfer of funds (typically from your customer to you) to the Federal Reserve. The Federal Reserve will then route the ACH transaction to your customer's bank. Your customer's bank will then take the funds from your customer's account and send it back to the Federal Reserve, who will, in turn, route those funds to your bank account, thus completing the ACH process.
This system opens up the opportunities for your business to grow. With an ACH processor, your customers will be able to pay you for the goods or services you provide through your website. While they may already be able to do so by the use of a credit card, ACH processing is much cheaper and not everyone has access to a credit card and is, therefore, alienated from the service or goods you offer. So, by utilizing an ACH processor, you will, essentially, be saving money and reaching out to more customers. An ACH processor will also allow you to accept money from your customers checking account over the phone and if needs be, allow you to collect recurring payments, such as subscription fees, from your customers.
ACH processors open up the potential of your business by offering a wide range of payment options. Through it, you can receive electronic payments from your customers in a secure and efficient way. Everything is conducted electronically, so you will not have to worry about spending time looking through stacks and stacks of paperwork, just to find details on one transaction. With the way the ACH Network has changed how business is conducted, it won't be long until your business will not be able to survibe without using an ACH processor.
Making the Right Selection
There are many ACH processors available. Some processors are more capable than others and some are priced a bit differently than others. Most of the time, the price and efficiency of an ACH processor depends on the banking connections that that processor has.
Here are some key rules to follow when selecting the right ACH processor for you:
- Choose A Processor With A Reliable Network: The last thing you want is to have a glitchy processor that delays transactions coming to and going from your accounts.
- Choose A Processor With Good Customer Service/Support: Being able to talk to and communicate well with you processor's customer service can mean the difference between minor issue and major problem.
- Choose A Processor Who Has A Good Reputation: It's probably a good idea to make sure that the processor you choose is established and comes with references.
As far as pricing goes, costs tend to vary. There are many different plans that you can choose from to meet the needs of your business. Some plans are perfect for small businesses who are just starting and some plans are great for large corporations who make thousands of transactions monthly. Whatever your business needs, the right plan is out there. Just remember to shop around and that you will pay for what you get. Cheaper is not necessarily better.