As the world becomes more digitized, businesses and payment methods have an obligation to become more technologically savvy. It is no secret that the world of paper is in decline. Today, businesses must accept all new forms of payment if they would like to remain competitive. This economic phenomenon stems from customers’ turning away from in-store shopping, cash, and paper checks. Instead, consumers and businesses have looked to their electronic alternatives. Digital checks or eChecks are a prime example of this evolution, and they’re what we will be discussing today. This blog will explain what eChecks, also known as ACH payments, are and how to effectively integrate ACH payment processing solutions into your business.
What is ACH processing?
The ACH, or Automatic Clearing House, is a banking network that permits the movement of paperless funds between bank accounts. The Automated Clearing House is regulated by a nonpartisan government entity that connects all banks in America. ACH processing is used for many different types of transactions: one of the most common being direct deposit (a method of paying employees directly into their bank accounts instead of passing along a check). Another example of ACH payments is autopay/recurring payment functions. Autopay works as follows:
- The customer’s checking account information is provided
- Customers authorization is captured
- When it comes time to pay, the company’s bank debits funds from the customer’s bank
- Once sufficient funds are established, the money is transferred from the customer’s bank account to the company’s bank account.
ACH payment processing solutions are a handy tool for consumers, so it’s no wonder businesses must comply or be left behind.
What are the Benefits of ACH processing?
A single-step ACH payment is simple and easy to complete. Instead of devoting time to paper checks, endorsements, and bank visits, ACH processing can be carried out virtually anywhere with a few simple clicks. Even more compelling, the need to constantly input payment details and private bank information is removed through the autopay function of the ACH payment processing solution. ACH payments are also more convenient for customers as they no longer have to worry about shipping paper checks again.
- Lower Cost
Removing the costly and lengthy process of sending paper checks saves money. The amount of time that goes into mailing payments and waiting for their arrival is time wasted. ACH processing allows customers and employees to focus on productivity and other business priorities.
- Cash Flow
The easier the process becomes to purchase a product, the more customers you drive through the door. The effortlessness of ACH payments improves cash flow tremendously because it makes your customers’ shopping experience better. This simple process encourages customers to come back and recommend others.
Digital security methods are superior to physical, financial protections. The American Bankers Association states that check fraud accounts for 47% of annual deposit account losses from pre-pandemic times. The digital protections of the ACH network are constantly updating, keeping data secure and credible throughout the transaction process.
ACH processing rids customers and companies of the sit-and-wait period of mailing checks. Not only does mail take time and things get lost, but the checks still need to be processed once they are received. ACH payments are sent in seconds and are processed within 48 hours of submission.
Where to Sign Up for Hassle-Free ACH Payments?
Seamless Chex is the ultimate solution for ACH processing. With solid bank relationships and experience with all industry types, Seamless Chex understands the various payment needs of your business. Seamless Chex ACH provides the following services:
- Same-day ACH Payment Processing
- Simple API
- Shopping-cart Plugins
- Recurring Billing
- Mobile Payments
- Mass Payouts
Contact a Seamless Chex representative today to set up affordable ACH payments for your business.