In case you may not be familiar with the idea of Automated Clearing House processing, it is the method used by most banks and other financial organizations when transferring credited or debited funds electronically. Specifically speaking, it is the relationship that occurs between banks which allows them to enable the transfer of electronic funds from one business to another as well as from a customer to business or vice versa.
Additionally, ACH payments are highly efficient, dependable, and is exceptionally secure and while also being more cost-effective, faster, and protected than when processing checks personally. ACH payment processing excels in one-time recurring payments that have previously been scheduled. The rise in popularity of this payment processing system among banks and other financial institutions is accredited to its dependable and safeguarded functions, as well as the benefits that it provides.
Here are multiple principal advantages both you and your business should be aware of:
Typically, ACH payment processing is highly beneficial because every single payment needs to be authorized before any transaction can occur. Alternatively, only one authorization is necessary for dealing with recurring payments. Additionally, direct deposits are immediately credited to a person’s bank account, which is much more convenient than taking a trip to your local bank.
The number of transactions done electronically has far exceeded the number of paper check transactions for over a decade now. In the benefit for businesses and financial organizations that use ACH payment processing, the savings are substantial, built on the fact that it is 5 times cheaper than when processing a paper check transaction.
Whenever a paper check is deposited into an account, the recipient may have to wait for up to 5 business days before they have access to those funds. On the contrary, the funds that are deposited to accounts using the ACH method will become accessible instantly.
Many people are wronged by identity frauds every year. Most identity frauds result from hackers and identity thieves attaining a person’s personal data from sources such as bank statements, credit card invoices, or through their personal checks. Furthermore, the principal benefit here is that ACH electronic transactions will not be lost, misplaced, or stolen meaning most snags are swiftly and effortlessly resolved.
Conventionally, Automated Clearing House payment processing was used by traditional banking establishments. Although, with the many improvements in internet technologies that have happened over the past decade, we have seen the beginning of payment processors.
For further information on how you and your business can take advantage of ACH payment processing, get in touch with the best ACH processor.