Why should businesses look at accepting ACH payments from customers? Let's take a look.
Benefits of ACH Payments For Businesses
Using ACH payment to send and receive money offers several key benefits for businesses.
1. Speed and ease
Electronic payments, like an ACH transfer, are faster and easier to handle compared to the traditional method of paying by check. Unlike checks, ACH transfers:
Are not held up by the time it takes for a check to be mailed
Cannot be lost
Do not have to be manually entered
2. Low cost
Many businesses accept payment by credit card, but the processing fees tend to be high - often in the realm of 2-4% per transaction (and that doesn’t include setup and operational fees).
It costs a lot less to take payment by ACH transfer, and those savings add up significantly when you’re taking recurring payments from customers.
3. Improved sales conversion / customer relationships
ACH payments make the payment process easier for potential customers compared to writing a check, increasing chances of converting them to a sale.
And, in the case of recurring purchases, payments via ACH can be automatic - meaning the customer doesn’t need to worry about receiving and paying a bill, removing that element of friction in their relationship with your business.
4. Pay remotely
Although credit cards also offer customers the ability to pay online or over the phone, ACH provides a helpful alternative for those customers who prefer not to give out their credit card information, or do not have one.
Benefits of ACH Payments For Consumers/Payers
In addition to being beneficial for businesses, ACH payments also offer benefits for consumers.
1. They’re simple
Paying via ACH removes any burden on the customer to order and write checks, mail them out, and cross their fingers and wait for delivery. And, by paying the funds directly from their bank account, they don’t risk racking up stressful credit card debt.
2. They can be automatic
For recurring purchases, paying via ACH allows consumers to have the funds debited from their bank account automatically each time the payment is due. This removes any hassle involved in keeping an eye out for bills to arrive, and following the payment instructions contained within.