ACH, or automated clearinghouse, is an electronic payment method that’s easiest to understand when you think of it as the next step in checks. It’s important for merchants to accept credit and debit cards thanks to how many people use them today, but merchants who accept large payments and use their website for business should definitely consider offering ACH as an alternative.
ACH is also known as electronic funds transfers, or EFT. ACH involves banks transferring funds between each other and between accounts, and they collect individual transactions into batches to make them easier to process. This method has a few downsides, but it also has some important benefits.
That con is the biggest reason why merchants who don’t accept checks these days also tend not to accept ACH payments. However, merchants and service professionals who send out bills, including utility companies, plumbers, electricians, pest control experts, and apartment renters, can all benefit from sending bills electronically and accepting payments online.
ACH shouldn’t be the only way you accept payment, if only because so many people rely on their credit cards and plenty of Americans still hand out paper checks when they pay their bills. However, making ACH an option can make your life a little easier and is definitely one of the cheapest ways to process payments.
Posted in ACH Processing on May 09, 2017