Business owners have more options than ever to process payments! Whether it’s cash, checks, credit cards, or online, there’s just so much out there. That’s why you need to familiarize yourself with the payment processing industry so you can choose the best payment channels for your business, one prime example being eChecks!
It probably comes as no surprise that plastic is still the most popular method of payment. According to the 2016 Federal Reserve, “credit cards account for more than two-thirds of all core noncash payments in the United States.” However, their research also uncovered another interesting statistic. They found that “from 2012 to 2015 ACH payments grew at an annual rate of 4.9 percent.”
One of the main reasons for this steady growth is that Automated Clearing House (ACH) payments can help reduce payment processing costs.
eCheck vs Credit and Debit
When you use your card, you typically go through a credit card network like Visa, Mastercard, Amex, etc. When you process an eCheck, you’re bypassing these credit card networks and instead go through the.
What This Means for Your Business
This means you’re not responsible for those pesky assessment and interchange fees, you know, those things everyone hates. A few other benefits include:
- No deposit fees
- Requires less workforce to process
- Reduces your processing costs by up to 55%
Cost of Processing eChecks?
Depending on the company, processors usually charge a flat fee between $0.25 to $1.50. A quick tip: if you’re a business that processes large transactions, you should opt for “per-transaction fees.” You’ll have to do some calculations, but it typically ends up being the cheaper route.
Be aware that some companies charge a monthly fee as well.
Other Benefits of eChecks
- Funds are available quickly (sometimes same-day AHC)
- Increase sales
- Decreases errors and fraud (has the latest in fraud protection technology)
- Better for the environment (decreases the number of printed checks and transport for them)
How can I get started with eChecks?
If you’re ready to start accepting eChecks, you can reach out to one of our reps or learn more about our ACH services, here. We know you probably have a lot of questions, and BillingTree is ready to help!