Most people are aware that offering a good variety of payment options when running a business is very important in terms of customer satisfaction. However, the benefits of offering ACH collection services are often overlooked by businesses these days because of the popularity of credit and debit cards among consumers when paying for goods and services. With these convenient payment options being the most common method of making online transactions in the modern world, many companies are reluctant to look for any other medium to receive payments. It is a mistake, however, to not consider all the available options. ACH collection services have a lot of benefits to offer companies.
Lower Processing Fees
When a business processes credit or debit card transactions for goods or services, they have a higher processing charge to pay. However, when companies opt to accept ACH collection services, they can benefit from lower processing fees when compared with the costs of processing cards or checks. Evidence from the Wall Street Journal states that individuals spend between $4 and $20 when writing a check when all the authorization, mailing, and time costs are taken into account, whereas ACH collections services keep the costs very low the funds are transferred directly between two bank accounts.
More Rapid Processing of Payments
When collecting payments in the form of checks, companies can often wait for as long as six business days for their funds to clear, and credit card payments usually take around three days to clear, whereas an ACH settlement takes as little as one working day to be received. It’s quite easy to see why this is an advantage to businesses, especially in terms of workflow efficiency and increased cash access.
Optimal Security of Funds
ACH collections services are also able to allay many of the most popular fears associated with the use of checks and credit cards. Checks can be misplaced or even forged, and credit cards could also be used fraudulently. Conversely, ACH transfers are sent directly from bank to bank, eliminating any intermediaries. Because they are also HIPAA-, PCI-, and SSAE-16-compliant, these companies help to bring additional peace of mind to customers.
Improved Convenience for Customer and Business Alike
ACH collection services make the transfer of funds simple and hassle-free for both payer and payee. Customers can forget carrying around a checkbook or credit card while business owners can enjoy greater flexibility and be more likely to receive quickly cleared funds for better company cash flow. Even better, since the financial transaction is carried out directly between two bank accounts, ACH collections ensure that business owners will no longer have the problem of having to chase customers after their payment was declined because their credit card has expired.
Easier Paperwork and Reporting
One of the other advantages of switching to an ACH collection service is that it substantially reduces the amount of paperwork a business will need to do. With formatted payment reports being produced automatically ready for download or for integration into the company’s core systems, producing the correct paperwork could not be easier.
Perfect for Recurring Bills
These services are also the perfect choice for any business that operates on a subscription model because they allow for cost-effective receipt of payments because of reduced transaction fees. Businesses that make the switch to ACH payments can enjoy impressive savings that can then be applied to other areas of their business where financial input would be more valuable. ACH collections services, such as BillingTree, allow companies to carry out their financials in the smartest way possible.