Automated Clearing House or ACH is a method for the transfer of electronic funds. Many companies help with ACH processing services. A number of transactions such as point of telephone payments, point of sale transactions and bill payments and more can be made through this network.
ACH transactions help improve the cash flow of your business by giving customers one more way to pay you. Credits and debits can be made through ACH. Using this method provides a multitude of benefits. The fees associated with processing payments through ACH are a great deal less than through credit cards. By encouraging customers to use this way of payment, your business stands to lower its expenses. Processing electronic checks also lowers expenses because you do not need to mail and process as many invoices. Payments via ACH go through more rapidly than many other methods. This is particularly useful when people are waiting until the due date to make payments. With ACH, they can still make those payments at the last minute thus reducing costs associated with collections and payments that are late. Electronic checks are also posted to bank accounts ahead of paper checks. They will often be put ahead of checks that were written several days before. This means that if someone is low on funds, you may get paid first. It can make the difference in getting your payment or not. If the person does not have enough funds in the bank, your debits can automatically be resubmitted. This helps ensure collection of your payment. It also saves you both money and time, as you will not need to have someone resubmitting the charge manually. Using ACH processing helps improve the bottom line of your business. It improves both the amount and the speed of funds entering your account. When it comes right down to it, sales mean nothing if the money is not received and using ACH helps you to do that more effectively.