Everything That You Need to Know About ACH Transactions

In almost all the business transaction, both the customer and the merchant love having options. The option for different methods of transaction leads to more opportunities for the trader and flexibility for the buyer. Generally, merchants prefer payment methods that are simple, easy, and have lower processing fees when compared to others. One of the best examples of this type of payment is automatedclearinghouse payments or ACH.

ACH is run by the National Automated Clearing House Association (NACHA), and when compared to the credit cards the processing fees of the ACH is much lower. This is the main reason why most of the start-ups and SMEs are now moving towards ACH mode of payment. If you’re new to this term and want to implement ACH as a method of payment and have ACH Payments Processing for your business then, here’s all you need to know about it:

What is ACH?

It’s an electronic funds-transfer system that directly deals with the payrolls, tax refunds, direct deposits, consumer bills, and many more payment options. This system allows the merchants to receive money electronically directly from the customer’s checking account. The ACH transactions,being electronic fund –transfer channel has helped in increasing the efficiency and timeliness of the transactions.

Benefits of the ACH network

It’s a system that adds all the transactions and then processes them at specific intervals all through the day. This is why the transactions done through ACH are easy and fast, with a debit transaction taking an average of less than one day to settle and a credit transaction taking an average of 2 to 3 days to settle. However, now with the recent changes in the operating rules, it’s believed that all the transactions done through ACH can be settled the same day.

How can you accept ACH payments?

ACH Payment Processing requires you to partner with a merchant account provider that could allow you ACH processing friendly rates and after that, there are 3 ways to process a transaction.

  • Check scanner

If you’re paid through a check then you can scan the check and transform it into an ACH token, which you can deposit in the processing account.

  • Virtual terminal

If you’re doing akeyed-entry transaction, all you need to do is just type the client’s account information into a virtual terminal to process the payment.

  • Website payments

You can also get your clients to shift from online payments, like PayPal and others to the online ACH transactions, which are also easy. The main advantage of doing so is that you will have to pay cheaper fees than other online transactions.

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