E-check and ACH Payment Processing?

As you may be aware, ACH payment processing capabilities eliminate the need for merchants to physically go to the bank every day to deposit funds manually. Rather, with ACH payment processing, e-checks can be verified and transmitted immediately to the bank through the secure ACH (Automated Clearing House) network.

In a nutshell, electronic ACH payments provide more efficient cash management capabilities and lower costs compared to traditional paper payments.

According to the Electronic Payments Association (NACHA), each year the ACH network moves more than $40 trillion and close to 23 billion electronic financial transactions, and now supports over 90 percent of the total value of all electronic payments in the U.S. With that said, it is quickly becoming one of the largest, safest and most reliable payment systems worldwide.

So Who Actually Uses ACH Processing?

A wide range of organizations in a number of industries can benefit from ACH payment processing, including, but not limited to, individuals, businesses, financial institutions and government organizations.

Some of the most frequent uses of ACH payment processing involve tax refunds, direct deposits of payroll, and Society Security and other government benefits. Additionally, loans, mortgages, utility bills, insurance premiums and other consumer bills are options, as well.

Here are a few examples of some industries and organizations that can benefit from ACH payment processing:

  • Medium/Large Enterprises: For large businesses with a lengthy list of staff on their payroll, ACH processing can help simplify the typical payroll process. Because it allows for direct deposit capabilities, merchants can quickly pay their employees securely and efficiently by easily transferring funds from one bank account to another.
  • Auto Finance/ Utility Providers/Education Loans/Property Management/: ACH payment processing makes it easy for agencies in many of these industries to schedule both recurring billings and one-time payments.
  • Nonprofits: ACH payment processing can make it easier for nonprofits to receive check donations from supporters. How does it work? Via a secure, hosted payment form on the organization’s website, donors can enter their checking account information and make donations straight from their accounts.

Finally, merchants increasingly prefer ACH payment processing over traditional checks because It can also simplify billing cycles by automating the majority of the billing process.

Contact us today for more information on ACH payment processing.