ACH payments are growing in popularity because of their many benefits both for clients and businesses. Simply put, ACH payments are a digital version of paper checks that are cleared over a clearing house network governed by the National Automated Clearing House Association (NACHA). It is a very safe, tightly regulated network that allows clients to make bank account to bank account transactions fast and easily. Let’s take a look at a few reasons why you should consider making the switch to ACH payments if you haven’t already.

Eliminate Paper Checks

Paper checks are antiquated and if you’re asking your clients to pay by check, you’re making things more difficult for them and yourself. With checks, every single transaction has to be verified. This can result in delays and these delays can vary, which complicates cash flow management.

Instead, you could use an ACH payment processor like Yodlee and have digital payment transactions cleared on the same day or the day after. Yodlee has an account verification service that allows you to verify payments fast without the need for micro-transactions or routing numbers. It will also ensure that the money is in your client’s bank account, which will reduce the chances of fraud, overdraft issues, or insufficient funds. This will greatly facilitate the whole payment and collection process and allow you to have much tighter control over your business’s finances.

Lower Fees

One of the biggest benefits of ACH payment is the lower fees. The average ACH transaction only costs around $0.30, which is way lower than with credit cards. This makes ACH payments a much better option, not only for businesses that process many debit card and credit card payments but also for those offering high-value services or big ticket items. 

Credit card costs can get really big on large payments, and you could potentially save hundreds or even thousands of dollars per month on transactions that could be directed toward much more important functions.

Convenient Payment Automation

ACH payments make recurring bill payments so much easier too. Law firms, for instance, will usually bill clients for ongoing hourly charges or installment payments multiple times. With ACH payments, all they need to do is input the client’s bank information once and set up automatic payments. Payments will only go through if the client actually has the money in their account, and the whole process will be paperless.

Safer for Clients

Fraudsters can get a lot of information from a check, and having your clients send multiple checks increases the risk that their information leaks and gets used by a malicious agent. This is why the FTC recommends that clients avoid paying with checks and why many clients will outright refuse to do it. With ACH payments, clients only need to file their banking info with you once, which will make them feel much safer.

Conclusion

These are all reasons why you should consider using ACH payments instead of credit cards or check payments for your business. It will facilitate your processes, increase safety, reduce the chances of breaches, and allow you to run a much smoother operation.