Although credit card processing is one of the most highly used transactions for many businesses, it is not a universal form of payment. Both companies and individuals rely upon checking accounts to handle many financial responsibilities. This is frequently the case when a credit payment is not viable as there needs to be a real time account transfer, or even when checking is used as a way to handle accounting management.
While this can facilitate many aspects of monitoring withdrawals and deposits in corporate accounts, it can cause limitations due to the need for physical presence in completing the payment processing. The capability to run e-checks and multiple types of transactions will not only open up new growth options, but can also ease accounting errors by creating electronically archived information that eliminates the need for manual reconciliation.
One accounting concern that many businesses have with multiple types of payments is lag time. This can occur whether there is a physical deposit or withdrawal being processed or whether the transaction occurs electronically. For largely automated processes, such as payroll, the lag time can represent loss of growth, as existing funds can often appear as held until the accounts are balanced.
National Processing handles a variety of concerns that are being faced with different types of financial transfers. ACH has become widely used as a solution not only for accounting concerns but also for the ability to process physical forms of payment in a virtual world. Along with the real time capability of ACH payroll and business to business transactions for larger companies, ACH also allows for customers who rely upon their checking account to still use this form of payment even for online transactions.
One of the innovative aspects about this functionality is the fact that it allows clients or small businesses to handle their accounting in a familiar manner, without having to learn new software or systems in order to keep finances in order. Electronic checks can still leave the appropriate paper trail for individual records, although this may happen in several ways.
For a basic ACH e-check payment, the account, routing, and actual check number are used as though the check were present, and the funds are transferred from one account to the other. The payer retains the physical check, and marks it as processed for their records. Many smart phones allow this process to be even simpler. So long as the accepting business has the appropriate considerations for their ACH, the customer can just send a digital photograph of the written check, and it will be processed as though it is present. However, the real time capabilities for transference can log the payment process as it happens. This not only leads to instant reconciliation, but also helps to cut down on late payment fees and delinquencies.