Accepting ACH Payments
What is ACH?
ACH is the short acronym for Automated Clearing House and is the actual network in which electronic transactions transpire between banks or bank accounts. The ACH network allows businesses to send and receive funds via a bank account. ACH is also known as electronic checks or echecks. These terms are used interchangeably.
You need to accept ACH
If you're not accepting (ACH) Automated Clearing House payments for your business, you should. A-matter-of-fact you need to.
Giving your customers more options to pay is better for your business. Offering various payment methods such as credit cards, debit cards, and ach lets your customers choose how they want to pay. With our All-In-One payment platform you'll be able to receive ACH payments via electronic invoices, over the phone, text payments and ACH payments online . In addition, you'll be able to set up automatic recurring ach payments.
The numbers do not lie. The growth for ACH is tremendous. According to the National Automated Clearing House Association (NACHA), 3rd quarter 2019 payments were up 9.5% year over year. This represents huge growth for a legacy payment system that's been around since 1972. This statistic gives us some insight into the use of cash (bank account funds) as a formidable method of payment. More and more people and companies are realizing the benefits of using ACH to accept and send cash funds via the ACH network.
The leading sectors contributing to this growth rate are as follows.
B2B ACH - Up 14%
Direct Deposit - Up 7.6%
Healthcare ACH- Up 13.1%
Internet- Up 15.6%
Same day ACH payments were up 54% for the same period.
You're simply losing money by not accepting ACH payments. ACH payments cost roughly 17x's less than credit card payments. Do the math. For a $300 credit card transaction you'll pay $8.50 ($300 x .0275 +.25). Our ACH flat fee pricing will cost you .50 cents. Now take $8.50 divided by .50 = 17.