After all, you want to keep it easy for them to pay your business.Īccounts Payable - Sending ACH payments is automatic with īill.com makes it simple and easy to pay bills and get paid electronically.
By powering your AR with the ability to accept ACH payments, you’re giving your customers an option they might prefer over other payment methods. They use them for regular transactions such as paying utility bills and accepting direct deposits from employers. If you went the route of ACH payments, it’d cost about $118.ĪCH payments are secure and convenient. If you process 20 checks a month, you’re out $1200 a year. While an ACH payment can run you 49 cents, a check costs $5 or more to get out the door.
Paper checks cost the most to use when you factor in the time, supplies, and bank fees. When compared to other means of payments, ACHs are gentle on the budget.Ĭredit cards charge you to use them-either you pay in transaction processing fees if you’re collecting money or you risk interest rates if you use them for payments. On a set date, your business will automatically have customer payments in your account. The best ACH scenario revolves around recurring customer payments. You don’t have to wait for them to mail a paper check or hassle them to pay. Within a day or two, that money lands in your organization’s account. Your customers authorize your company to deduct an amount from their bank account. You can schedule ACH transfers for specific dates or as recurring payments so you know exactly when that payment will hit.Īccounts receivable loves ACH payments. With an ACH transfer, the debit is reflected on your account immediately. In the meantime, you’re juggling cash flow and trying to remember what will hit when. When you pay with a credit card or paper check, it can take anywhere between a week to 30 days for that payment to actually leave your bank account. Three reasons why you should care about ACH paymentsĪCH as a payment solution is great for your cash flow. The non-profit organization enforces a strict set of controls and procedures for all parties using ACH payments. Today, the federally regulated network is overseen by NACHA. Is ACH payment safe?ĪCH payments date back to 1974 when several financial organizations banded together to create regulations, standards, and security for these types of money transfers. No wonder more and more businesses are making the move to electronic payment options. ACH payments can be accepted remotely, like credit card payments, and are generally cheaper to process than card payments. Electronic payments are received quickly and reliably, and there’s no time wasted getting checks to the bank and waiting for them to be deposited to your account (or bounced). Using electronic payments helps reduce errors saves valuable resources like paper, ink and truck fuel and provides much greater security than using paper checks. This payment system is so popular because of its many benefits.
Learn more about the process at ACH payment volume grew to over 23 billion transactions in 2018, marking the fourth consecutive year in which the ACH network added more than 1 billion new payments. Direct Deposit via ACH and Direct Debit via ACH are simple, safe, convenient, and cost-effective electronic payments options that businesses of all sizes can utilize to make and receive payments. How does ACH payment processing work?Īny electronic transfer of funds from one bank account to another can be made through ACH. Managed by NACHA (the National Automated Clearing House Association), the network is much quicker than paper checks, which can never travel faster than the speed of mail. ACH payments are electronic payments made through the Automated Clearing House network, a secure system for clearing electronic payments between banks.
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