If you want to get ahead and stay ahead in today’s economy, than it is absolutely essential that you offer ACH processing online as a method of payment for your customers. As the internet has taken such a strong foothold in the retail model of our world, more and more people are specifically seeking out companies that allow them to make electronic payments. Whether for basic shopping, utility bills or even tuition payments, people enjoy the convenience that online ACH payments afford them and will often opt to do business with companies that offer ACH as a payment option over those that do not.

ACH stands for automatic clearing house and is a method of moving fund directly, from one bank to another, via the Federal Reserve and Electronic Network. By signing up to make an ACH payment, a consumer is authorizing a financial institution to make a withdrawal from their own account on behalf of the business that the consumer is paying. By using the ACH to make a payment, consumers can avoid having to write a check and mail it or using a credit card. The money is wired directly from their account to the payee’s account, and there is no risk of their information being misused as can happen with credit cards. Many businesses now offer ACH processing online.

Online ACH processing provides consumers with the ability to initiate an ACH transaction over the internet. Many consumers utilize this service to make recurring payments. By setting up a monthly or weekly ACH transfer, they can avoid ever incurring late fees or having checks get lost or stolen in the mail. Businesses that offer ACH processing online often find that they have a much better on-time payment ratio than those businesses that rely solely upon receiving payment by check or other methods. The extreme convenience of being able to pay for a good or service via online ACH payment helps ensure that those payments actually happen.

If you are looking for a good, solid way to help your business succeed, you should definitely look into providing ACH processing online to your customers. The more ways that your customers have to pay you, the more likely they are to pay. Accepting ACH payments allows you to avoid ever having to hear that “the check is in the mail” again. Quick, easy and simple to set up, ACH payments are a great option for virtually any business, anywhere. Please call us at 877-458-3323 for any questions, or visit us at www.nationalprocessing.com.

Accepting credit cards and other forms of electronic payments is the only way for the businesses of today to continue to stay in the game. Today’s consumer wants options when it comes to how they pay for things. Those options include cash, electronic check, ACH transfer, credit and debit cards. Merchants that want to succeed need to take the widest possible variety of payment options possible. One convenient way for merchants to do this is to utilize a payment gateway. A payment gateway is an internet service that allows you to utilize a computer to log into a virtual terminal, and then the gateway transmits the information to an electronic payment processor.

For typical face to face merchants, having a standalone credit card terminal is a viable option. For merchants that process entirely over the internet, or who rarely, if ever actually see the card that they are charging, a terminal can just needlessly take up space. There are a variety of powerful virtual terminal programs available that allow you to turn any computer with an internet connection into a terminal where you can key in your information and then transmit it to the same networks that stand alone terminals do. In order to make this happen, you will need to use a payment gateway.

Even face to face merchants are finding that using a payment gateway is a viable option. Many retailers are opting to use integrated POS systems that are both a cash register and a credit card terminal. Many of these are actually computers. Other merchants, who may not have a set physical location, favor using these types of applications so that they can secure process credit card and ACH transactions even when they are on the go, at tradeshows, craft fairs and other events. Having a laptop that is configured to talk to the gateway can turn any location into a storefront.

Not all payment gateways are compatible with all electronic payment processors. Before considering purchasing a software package that utilizes a specific payment gateway, it is important that you check with your processor to ensure that they can support that configuration. It is also important to make sure that the gateway and software combination that you are selecting supports all of the different payment methods that you wish to offer. Once you hit upon the correct combination, your electronic payments processor can have you up and running in no time.

As a consumer, chances are that you are aware of several ways that you can pay for the goods and services that you use. The first form of payment that you become aware of is cash. You learn about money early on in your education, and are typically aware of what it looks like and what denominations it is available in by early grammar school years. The next form of payment that you learn about is checks. You learn that a check is a small contract written and signed by you, promising a specified amount of money from your bank account to be paid to the bearer of the check. In day to day life, you also become exposed to credit and debit cards. What you may be less aware of is ACH processing and the payments that can be made that way.

ACH stands for automatic clearing house. ACH payments have been around for many, many years but are only just now becoming more popular and widely used by merchants all over. An ACH payment is a direct draft from your bank account, to the bank account of the merchant that you are paying. Similar to a check, it is much faster and is applauded as being much more secure. Funds are moved from one bank account to another via the secure network of the Federal Reserve Banks. Requests are received and then routed to the correct bank by this network. The reply and the resulting funds are then rerouted back through the same network, completing the transaction. Faster than a check, ACH processing is a secure way to pay.

Often referred to as an electronic check, there are also many other methods of ACH processing out there. Debit cards, even those labeled as MasterCard or VISA check cards, route their payments through the ACH payment system. Direct deposits from your employer or other revenue sources, such as social security are also ACH payments. Many banks and utility companies also use ACH payments to provide their customers with a way to set up recurring, automatic payments.

Today, many e commerce businesses are also offer ACH processing as a means to pay for goods or services purchased from them directly. By doing this, they are providing you with a fast and secure way to pay for your purchases without ever having to resort to using a credit card. The payment is fast, and you are never left with interest or finance charges to pay, which is the best of all worlds for both you and the merchant.

The Federal Reserve is the central banking system of the United States. It was created in response to the collapse of many financial institutions in 1907. The first central banks in the United States were based on processes and procedures established by the Bank of England.  In view of the stock market crash of 1929, two commissions were created. One was tasked with studying the American monetary system, primarily controlled by Wall Street. The other researched the feasibility of a central banking system, similar to the one used in Europe, rather than relying on a government-issued bond system.

It was decided that a consistent currency rate that encouraged international trade would best serve the country’s economic balance and requirements. The Federal Reserve Act was passed as a means to achieve this stability. The rules and regulations were intended regulate and supervise the activities of financial institutions. Since inception, its role has been modified, based on economic issues and need.  Members of the Board of Governors are appointed by the president and approved by the Senate. They are the majority of the twelve-member Federal Open Market Committee that makes key decisions regarding monetary and credit decisions that affect the economy.

The Federal Reserve banks consist of twelve regional banks with 25 branches. These banks set discount rates and monitor the economic climate and financial institutions within their districts. They also operate as standard banks, providing financial services to government and depository institutions.  The committee meets four times a year to discuss current economic developments and revise policies as needed to more fully meet the changing financial needs of the country. Trends such as price increases, wages, employment, consumer spending and construction are considered when revising or creating new policies. The foreign exchange markets, production of exports and the status of business investments are also considerations.

The scope of policies defined by the Board of Governors encompasses everything from interbank lending and the management of excess reserves to open market operations and the implementation of discount rates. The Federal Reserve works in cooperation with the Electronic Payments Association to maintain the development and growth of the Automated Clearing House payment system that processes the majority of all consumer and merchant transactions in the country. This system is responsible for direct deposits of payroll, social security and tax refunds. Contact National Processing for more information on how the ACH payment network can help meet your business needs.

ACH payment processing centers accept and process many forms of direct deposits, from payroll to social security and tax refunds. They also allow consumers to make payments directly from their bank accounts for mortgages, utilities and credit cards. Businesses may make payments to other businesses. E-Commerce transactions can be completed, and electronic checks processed. The ACH processing network consists of more than 20,000 financial institutions that serve over three million business and 115 million consumers. Funds are processed in batches, following the rules and regulations set up by the NACHA, its governing body. There are several incentives for merchants to use ACH processing.

The most important reason that merchants use ACH payment processing is the substantial reduction in banking fees. When checks are electronically processed, the amount is verified before transfer is attempted. If there are insufficient funds, the transfer will not occur and there will be no fees on a returned check. Transactions can often be completely processed in 24 to 48 hours. This is several days faster than waiting for checks sent via the Postal Service. When payments and transfers take place electronically, they are processed first. This means faster settlement and funding. If there are insufficient funds, electronic payments are paid as they become available.

When paid on a first come first served basis, the merchant gets paid faster as paper checks are put at the end of the line. With ACH payment processing, much of the process is automated.  For merchants, the ability to scan a check or swipe a card through an electronic reader means fewer errors. If invoices and payments can be accepted electronically, there are none of the expenses associated with mailing a printed statement. From stamps and envelopes to the personnel required to prepare them, man-hours are significantly reduced. Customers like to have the flexibility of several payment options.

When doing business with ACH payment processing, customers have the convenience of setting up automatic payments, so that less time is spent paying the same bills each month.  Payment plans can be set up to assist the customer in fulfilling their financial obligations to the merchant.  The faster and easier payments are, the more likely the customer will be to shop with that merchant again. Reporting and standardized downloads makes it easy for merchants to track settlements and insufficient funds. For more information contact National Processing, Better Business Bureau accredited and experienced in handling all of your processing needs.

An interchange fee is set by financial institutions or credit card associations and is the percentage of a sale that is charged to a merchant each time a customer uses a credit card. This percentage, as well as a small fee charged by the acquiring bank, is deducted from the amount it pays to the merchant’s bank. The fees differ, based on the structure of the account.  If cash is withdrawn at an ATM, the fees are paid by the bank that issued the card, rather than a merchant. The fee structure has several variables that contribute to their monthly totals.

An Interchange fee is based on transaction components such as the credit card brand, type of card, size of the merchant accepting the card for payment and the type of transaction. The amount of these fees is very controversial. Regulators, merchants and various coalitions have filed grievances, brought lawsuits and have sought many ways to reduce these fees. The lower cost of technology and the disparate differences between the fees charged in the United States versus other countries have been used as a basis for the reduction of fees. In March of 2008, the Credit Card Fair Fee Act was introduced.

The goal of the legislation was to require financial institutions to negotiate with merchants and retailers on terms for interchange fees paid. The basis was that it would encourage competition between vendors in the credit card processing system. Another bill was introduced in June 2009. It was similar to the bill introduced the previous year. It focused on passing the cost of doing business to the consumer, rather than on the financial sector. It was referred to the House Financial Services committee in October, 2009. Rulings and information from committees such as this are notoriously vague and timelines for a decision are fluid.

While the results of the committee’s findings may take months, or even years to be released, the interchange fee will continue to exist. There are many web sites that provide the opportunity for consumers to voice their opinions, read articles about the House committee’s findings and to sign electronic petitions in an effort to lower existing fees. The primary point of frustration for consumers and merchants alike is that these fees, unlike interest rates or ATM fees, are hidden. Contact National Processing if you would like to know more about merchant accounts and how to manage the fees.

Automated Clearing House or ACH processing entails the completion of a transaction between two authorized parties with payment being sent from one account to another.  The parties include a receiver, who is the account holder sending payment and the originator who is accepting the payment. For a transaction to be successful it must conform to all federal rules and regulations. This includes written authorization from the receiver for the amount and date that the payment is for and acceptance of the terms. Due to the speed with which entries into the system are made, there are a few consistent issues that occur.

While digital payments are usually completed through ACH processing within 48 hours of authorization, physical checks take longer. If an account holder attempts to stop payment on a check, it is frequently unsuccessful. If the entry has already been submitted, but it has not yet been completed, the funds still appear to be in the account. If the account holder wishes to cancel the transaction once it has been initiated, the originator has up to 60 days to return the funds. The clearinghouse is considered an arbitrator between the two parties if a dispute for the funds needs to be settled.

ACH processing is expedited by the use of software specifically designed for this purpose. Depending on the package being used, it can assist online retailers with electronic funds transfers or electronic checks.  Remote deposits can be completed for back office or accounts receivable electronic check conversions, one-time debits or recurring deposits. Most can handle business to business transactions as well as business to consumer transactions. Business size may dictate the options being used and their return on investment. Larger businesses may need the flexibility to accept checks by phone, fax or online, especially if they have inbound or outbound telemarketing services.

Options for recovery for insufficient funds and batch file uploads make it easier for businesses to run all of their ACH processing through one location, streamlining a process that they rely on for their financial stability.  When selecting the product that will best service your company’s needs, make sure they are accredited by the Better Business Bureau. Ask if transactions can be submitted 24 hours, 7 days a week and take a look at the reporting options. National Processing provides a wide range of products suitable for start-ups to large organizations. Solutions are scalable and designed to save you time and money.