Little things have a way of piling up if you don’t keep track of them, and this can sometimes be the case with the way you handle payments. Depending on the kind of system you use for handling transactions in your business, you may be paying a service fee for every time a payment is processed. Of course, these fees aren’t large, but if you do a large volume of business, each individual transaction can really add up.
But for businesses that don’t need to process payments and other transactions as and when they occur, there is one way to keep things more efficient and bring costs down. It’s just a matter of looking into solutions that fit a less conventional working schedule.
The Automated Clearing House, or ACH, as it is more popularly known, is system of payment processing that manages to be both cheaper and more efficient than other systems, but that’s because it works on a different schedule. Obviously, at the retail level, a business transaction must be in “real-time.” If a customer wishes to purchase a product with a credit card, that payment must happen on the spot, with the retailer handling one part of the transaction while a payment system provider and credit card company complete and record the transaction.
However, for people that don’t have the same schedule constraints, an ACH system makes a lot of sense. It’s a reduced cost alternative that manages to achieve its savings through an efficient sense of scheduling. Processing payments through ACH means that your financial transactions are “stored” until the end of the business day. Once operating hours are over, at an appointed time, your payments are all processed in one large batch. It’s the same kind of efficiency that factories use with assembly lines. Rather than starting and stopping an entire line for each individual process, everything is prepared in advance for a large series of activities and done in one “run.”
This makes a tangible impact on savings for payment processing fees, as a large, single batch of payments is cheaper to handle than an individual series at different times over the course of the day. Because the processing occurs at the end of the business day, there’s also no danger of having “missed out” on a particular payment either.
So if you don’t have a strict schedule for how you handle the processing of your payments in your business. Consider an ACH solution. What you lose in real time transaction processing you make up for with efficiency and reduced costs.
Posted in ACH on Dec 22, 2015