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Female Hands Holding Credit CardThe automated clearing house is a very specific form of payment processing that allows vendors to save money on transactions, especially the more costly credit card transaction that needs to be paid with every sale that occurs during the day. ACH enjoys a much lower cost for payment processing because it handles all the payments in one “batch,” at the end of the day, rather than a series of individual, real time transactions. Depending on rates, vendors can save anywhere from 1/5 to 1/20 the cost of a credit card or debit transaction. So who would benefit most from using <a href="https://nationalprocessing from this source.com">ACH?

Service Industry

If you don’t sell products, but instead provide services, such as plumbing, legal services, creative services like design or illustration, or even financial services such as accounting, then ACH may be an ideal system of payment for you. Since you are charging based on services rendered rather than products sold, you don’t conduct a lot of transactions over the course of a business day, and are generally not in a hurry to ensure you get paid on the same day you charge for your services.

Business To Business

If you’re not a consumer business, but a business that works with other businesses, ACH is probably a much better idea for you, especially if you have regular customers with established relationships and regular, recurring payments. You can actually schedule automatic, recurring payments if you like through ACH, ensuring a much faster, smoother business transaction with no one forgetting about payment schedules since it is all handled by software.

ACH may not be for everybody, but for specific businesses, it offers very real, substantial value, and with the possibility of ACH in America going to a same day payment model in the near future, things may get even more convenient.

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Posted in ACH on May 10, 2016