Low Rates on Electronic Check Payments
ACH (Automated Clearing House) is a method in which retailers or service providers can accept personal checks online while processing the check electronically like a credit card payment. The customer’s payment comes from their checking account, but you do not have to wait for your bank to process the check, send it to the issuing bank, and then wait for the payment to clear, a process that can take upwards of a full business week.
Losely associated with EFT (Electronic Funds Transfer), the system makes it easy for you to clear check payments quickly and efficiently. You can also use the ACH system to send payments to your own creditors automatically so that the payment is received on the exact same day that you receive it. Normally, you would mail a bill and that bill would take up to five days in the mail before the company received it. With electronic funds transfer, payment is recorded on the same day that you have sent it.
Unlike credit card processing methods, ACH is generally fee free. You still do face bounced check charges, just as you would with a debit card payment, but with a firm policy about bounced checks, you can avoid hassle if this happens and have the customer reimburse you for any bounced check fees. It is also an easy system to track because everything is recorded online, and you can check the balances daily from the comfort of your own office or home computer. You’ll be able to cut down the necessity of having extra financial workers and eliminate the extra salaries and benefits that would have been paid out when you had different clerks to track your accounts payable and accounts receivable.