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Top 5 Reasons Your Business Needs ACH Processing
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'Top 5 Reasons Your Business Needs ACH* Processing' by Wayne
Akey wakey@ach-payments.com
Almost any business, on the Net or not, can benefit from using
the ACH system to electronically move money. Here are the top 5
reasons why:
1) Accepting checks via your web site.
Everyone knows you have to accept credit cards to succeed
online. The problem for many consumers is that they either don't
have a credit card or are at their credit limit. The good news
is that the vast majority of these consumers have a checking or
savings account that you can access for payment.
Using ACH processing allows you to accept payment from a
checking or savings account electronically. Funds are debited
from the customer and credited to the business owner. Issues
such as bounced checks or closed accounts can be addressed
through a combination of fraud screening and collection tools.
This includes the ability to verify in real time that the
account number the customer uses is valid and that there is
money in the account.
There are many providers. PayPal, http://www.paypal.com is
perhaps the best known. There are more economical options
available. The processor you elect to use should have
experience, a client list and easy to use web site integration
tools.
ACH processing can be much less expensive than credit cards. On
a typical $100 transaction you could pay $2.75 or more for a
credit card as opposed to .35 or less for an electronic check
with no discount rate. Using ACH processing can also save a
great deal of money if you receive an NSF (non-sufficient funds)
check. Depending on what your bank currently charges you can
save 90% or more.
2) Accepting checks via phone.
NACHA (http://www.nacha.org) the governing body of electronic
transactions now allows a business to electronically debit a
consumers account for payment taken by phone. Similar savings to
web transactions are possible. You can offer a new payment
vehicle to your customers and cut costs. Verification services
can reduce fraud and the charge back window compared to credit
cards is shorter.
3) Recurring payments.
If your site collects a monthly fee from consumers or businesses
and you only use credit cards you are both paying too much and
losing a significant percentage of users who would pay
electronically via ACH.
4) Electronic pay-outs.
If you pay affiliates by mailing checks you could be
electronically crediting their account. No postage or invoice
costs. Automation of payments is possible.
You can also pay employees and vendors via ACH.
5) Processing mailed payments.
Your bank probably charges between $10-$20 for returned checks.
You can convert these paper checks to electronic transactions
and get your money faster, avoid expensive returns and trips to
your bank.
These are 5 solid reasons your business needs ACH processing.
The bottom line is that it can save you time and money while
offering customers a payment alternative.
Partner with a reputable ACH processor and you can enjoy the
multiple benefits of ACH payment processing. These include
reduced costs and time as well as automating manual tasks.
*ACH refers to the Automated Clearing House and generically
means money moves electronically.
2004 by Wayne Akey http://www.ach-payments.com
------------------------------------------------------ ABOUT THE
AUTHOR: Wayne Akey has helped numerous businesses save time and
money with ACH processing. Get your free report on how your
business can benefit
http://www.ach-payments.com/software/secrets.doc or visit
http://www.ach-payments.com
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** If you choose to use this article please be kind enough to
email me at wakey@ach-payments.com with the word "Article" in
the subject.
About the author:
------------------------------------------------------ ABOUT THE
AUTHOR: Wayne Akey has helped numerous businesses save time and
money with ACH processing. Get your free report on how your
business can benefit
http://www.ach-payments.com/software/secrets.doc or visit
http://www.ach-payments.com
------------------------------------------------------