One successful development in the world of entrepreneurship that made the payment process easier and more secure is the presence of the ACH system. Some of us may have used ACH and eChecks interchangeably but both are different when it comes to the payment process. Let us have a closer look and a quick touch of the ACH basics.
ACH can be considered the highway for automating payments in bank-to-bank (or
business to business) transactions that are best suited for recurring payments such as utility bills, payroll, mortgage, insurance, or installment payments.
Let us take a customer’s perspective. You relay your bank information to the mortgage company. In the case that there are a set amount and a specific time, you can arrange a payment monthly. This is where the ACH process comes in the picture. By calling the ACH processor, you authorize the transfer of the amount to the company.
1. Paperless transaction.
We all remember writing checks. Writing out all the details each time along with your signature to send the payment, and then reconciling with your account balance. You still have to do all of that with e-checks but, where the two differ is that, with e-checks, you need to do that all over again for each payment. ACH clearly eliminates the hassle of traditionally writing checks thereby saving you time. Additionally, more time can be saved with authorizing recurring payments.
ACH guarantees that there are sufficient funds (no disputes and declines) when each payment is made, it paves the way for security and to cease possible fraudulent activities. It also makes sure the funds' post of the exact date thus reducing late payments that can occur from mailing traditional checks.
3. Fast and Efficient.
ACH offers a same-day process making it more convenient and cost-effective. All parties, customers and businesses alike can enjoy convenient processing of funds that are up to date and accurate.
So who are the people that can provide you with an ACH system? That’s where the ACH processor comes into play. When initiating and authorizing payments, it’s important to evaluate and make the right pick of an ACH processor you can trust.
The fees attached to ACH are much less than credit cards and perhaps even less than accepting e-checks.
Agapay is proud to be a trusted processor for automatic payments that provide you with both security and convenience. Is ACH right for you and your company? Call Agapay today at 800 644 3909 or email us at [email protected]!