The main role of ACH processors is to receive files from the Originating Depository Financial Institution, or ODFI, process them, and deliver them to the Receiving Depository Financial institution. They maintain real-time reporting on many aspects that pertain to each transaction. Processors are required to uphold the rules and regulations set forth by NACHA, the National Automated Clearing House Association. These rules and regulations, which constantly undergo review and revisions, were created to protect the consumer as well as the merchant. There must be authorization from the receiver allowing a deposit or withdrawal into their account.
Most businesses benefit from using ACH processors to electronically accept payments. One of the more recent rulings from NACHA is the approval to electronically accept transaction deposits via phone. ACH processing enables merchants to accept payments from checking and savings accounts as well as debit or credit cards. They have reporting tools and fraud protection features that protect the merchant from bounced checks and closed accounts. As the processors work real-time, verification is almost instantaneous. Utilizing this method can be less expensive than credit cards. If your business collects recurring monthly payments, there are large transaction fees each month.
Using ACH processors to accept payments electronically saves time and expense, especially when compared to mailed invoices and payments. If electronic bills are sent, there is no postage, envelope or paper involved, hence reducing the manpower and expense of outgoing mailings. If electronic payment can be accepted, funds can be verified immediately and the transfer from one account to the other is quick and easy. There will be no checks returned for insufficient funds, or bounced check fees. It is not only external customers who benefit from electronic payments. Your employees will also benefit. Paychecks can be deposited directly into their bank accounts.
This saves the time and money associated with printed checks. If you are beginning your search for quality ACH processors, you may want to contact your bank. Most customer service representatives are familiar with business services and will be able to provide recommendations and possibly the names of several providers. Transactions sent electronically will work exactly like traditional forms of payment. When the dollar amounts are cleared, the bank credits or funds the appropriate account. If there are insufficient funds, you will be notified. National Processing provides services and support to businesses that wish to accept electronic checks, web and credit card payments.