ACH Payment Processing

Cash and Merchants

What is ACH Payment Processing?

ACH Payment processing is different to credit or debit card payment processing and it does not provide real-time authorization for the transactions that are done. The payment process takes a few days and the funds are electronically credited or debited within a few days after the initiation of the payment process. This payment process gives you the option to accept payments over the phone, in the store or online and helps you to convert paper checks to e-checks while also setting up recurring billing.

What is e-check processing?

An e-check is just the electronic version of your regular paper check and can be used to make payments online. By using the bank routing number, your bank account number and the name in which the bank account is held you can transfer funds from your account to the account of the person it is intended to. A merchant can accept and process e-checks in two ways. There are check scanners that will allow the merchant to scan the physical check that is given using the scanner and convert them into an e-check and submit it for getting the payment electronically. Another option is to use a secure web-based system that will allow the merchant to key in the details like the bank name, bank routing number, the bank account and the name of the account holder to process the e-check. In both, the options time taken for the process to complete is generally 2 to 3 days.

Benefits of ACH Payment processing

  • The fee that is charged for ACH payments far less than what you will have to pay for credit card payments and can help you save money
  • Preference is given to e-checks when compared to paper checks and therefore you have a better chance of getting the payment even if the funds are low in the account
  • By providing the customer other online payment option from the regular credit and debit cards you tend to attract customers who are not comfortable using cards.
  • The entire process is efficient and fast when compared to paper checks and is a great way to increase your cash flow into your business

Time and Money saved by using ACH Payment Processing

When a merchant offers the customer an alternative mode of payment like accepting e-checks there is money saved by the customer and by the merchant as the processing fee for e-checks is much lower than other online payment options and for the customer, he will not have to deal with the interest rates that come with using credit cards. Using debit cards and net banking also does include a few transaction charges and these can be avoided by the customer. The merchant also saves the time to go to a bank to deposit the check as e-checks can be sent for processing from the store.