Looking into new ways of boosting your sales revenue? If so, consider ACH payment processing. ACH-enabled bank transfers are fast, simple, and cost-effective. On top of that, all you need to do to start accepting ACH payments is to select the right processor and set up your website. Here’s how ACH payments work and how they can help your business.
How ACH Processing Works
In simple terms, ACH payments are just another form of electronic funds transfer (EFT). If a customer wants to pay for your products or services, they can transfer the funds from their bank account directly to your business account. The ACH (Automated Clearing House) network makes the transaction process quick and efficient.
Benefits of ACH Processing
Other than speed and efficiency, ACH payment processing comes with these benefits as well:
1. Easy Setup for Customers
Since ACH processing is so user-friendly, many customers prefer it over traditional credit card processing. All you need to receive ACH payments is your customer’s banking information. Once you enter it, your customers can pay invoices at whichever interval you choose, and all payments will be automatically deducted from their account.
2. Better Processing Fees
If you’re using a traditional credit card processor, you may be paying more through processing fees. As a rule of thumb, the more credit cards you process, the more you can expect to pay in fees. By comparison, ACH processing will only set you back 1% per transaction, regardless of the transaction size and volume.
3. No Expired Credit Cards
Credit cards often expire or have their number changed after a suspected fraud attempt. With ACH processing, your customer’s routing number and bank account will likely remain the same for many years.
How to Accept ACH Payments
As you can see, accepting ACH payments can provide a big boost for your business. Here’s a short guide on how you can set it up.
1. Choose a Provider
Your first step should be to select a provider that supports ACH processing. If you already have a processor, it’s worth checking whether they offer ACH services. This is the easiest option, as it lets you keep all your payment needs under a single roof.
If you need a new provider, plenty of banks and payment processing platforms (such as Stripe) offer ACH services. You may also invest in financial services software that supports ACH processing. For instance, QuickBooks comes with built-in capabilities for accepting eChecks and ACH transfers.
2. Set Up ACH Tools and Processes
Once you’ve picked your provider, you’ll need to establish the procedures for accepting ACH payments. This step will largely depend on which provider you choose, but you’ll likely need the following tools:
• A virtual terminal: This lets you input your customers’ banking information.
• ACH forms: You’ll send these forms to customers to obtain their banking details.
• An eCommerce website: You can use the site to provide a self-service platform for shoppers who prefer to input their banking information themselves.